City Hotel Auctioning 21.5 Lakh Shares: Apply Now for Unsold Rights
City Hotel Share Auction
2nd November 2025, Kathmandu
City Hotel Limited is set to auction over 2.1 million unsold right shares starting from Karthik 23.
City Hotel Share Auction
The company initiates this process for the 21,50,418 units of right shares that remained unsubscribed during the initial offering. This significant move provides investors a fresh opportunity to acquire shares in the hotel company.
Prospective buyers must apply by bidding above the minimum price set by the company. The auction includes shares from three distinct groups: promoter, employee, and general public. Investors actively seeking a stake in the hospitality sector should pay close attention to the City Hotel Share Auction.
Breakdown of Auctioned Share Groups
The total 21,50,418 unsubscribed shares have been categorized based on their original holder group. Understanding these categories is crucial for potential bidders. The largest segment is the promoter group, comprising 19,89,999 units of shares.
This is followed by 6,000 units allocated to the employee group. Finally, the remaining 1,54,419 units belong to the general public group.
Importantly, the shares from both the promoter and employee categories are subject to a regulatory lock-in period. This lock-in remains effective until Jestha 4, 2083 BS. Interested investors must acknowledge this lock-in condition before submitting their bids for these specific groups.
Bidding and Allocation Process Explained
Prabhu Capital Limited acts as the official Sales Manager for this sealed-bid auction. City Hotel Limited has fixed the minimum bid price at Rs. 100 per share. Consequently, applicants must quote a price higher than this base rate to qualify their application.
The principle of allocation is straightforward: the shares are awarded to the bidder who quotes the highest price. Should any shares remain after the primary allocation, they will be distributed to the second-highest bidder, and this process continues until all the shares are fully subscribed.
This transparent mechanism ensures fair distribution based purely on the quoted bid price. Investors should thoroughly analyze the market before placing their competitive bids in this City Hotel Share Auction.
Application Details and Key Deadlines
Investors can apply for a minimum of 100 units of shares. There is no upper limit for applications; applicants may bid for the entire quantity of shares put up for auction.
The application window is open from Karthik 23, with a final deadline set for Karthik 30. Applicants must adhere to this stringent timeline.
Applications received after the stipulated closing time will be summarily rejected by the Sales Manager. Therefore, prompt submission is strongly advised to ensure participation in the bidding process.
Where to Submit Your Bid Applications
City Hotel has established several designated locations for bid submission to facilitate wider participation. Investors located within the Kathmandu Valley must collect and submit their sealed-bid application forms at the office of Prabhu Capital, located in Kamaladi, Kathmandu.
For applicants residing outside the capital, the process involves visiting specific branches of Prabhu Bank. These authorized branches include Biratnagar, Hetauda, Birgunj, Pokhara, Surkhet, Butwal, and Dhangadhi. This extensive network ensures access to the auction for investors across key regions of Nepal. All applicants must use the official sealed-bid form.
Background on the Initial Right Share Issuance
The company originally issued right shares amounting to 80 percent of its existing paid-up capital. This issuance totaled 1,33,92,000 units of shares, equivalent to Rs. 1.3392 billion.
The Nepal Securities Board (SEBON) granted permission for this right share issuance on Shrawan 4. The current auction of the unsubscribed shares represents the final stage of this capital raise process.
Successfully selling these units through the City Hotel Share Auction will finalize the company’s capital structure adjustments. This auction is a crucial step for City Hotel’s financial strategy moving forward.
For more: City Hotel Share Auction
