Last Day to Apply for Hotel Forest Inn’s IPO as Public Offering Closes Today

Kathmandu — Today (Magh 26) is the final day for investors to apply for the Initial Public Offering (IPO) of Hotel Forest Inn Limited, which has been open to the general public since Magh 22. The company had launched the public issue after completing the allotment process for Nepalis working abroad in the first phase.

Following the distribution of shares to migrant workers, the company moved to the second phase by issuing shares to the general public. This step marks an important milestone in the company’s effort to expand its ownership base and raise capital from domestic investors.

Hotel Forest Inn had received approval from the Securities Board of Nepal to issue 40 lakh ordinary shares worth Rs. 400 million, representing 20 percent of its issued capital of Rs. 2 billion. Out of this, 4 lakh shares were allotted to Nepalis working overseas, 2 lakh shares to mutual funds, and 80,000 shares to company employees.

The remaining 33.2 lakh shares, worth Rs. 332 million at a face value of Rs. 100 per share, have been issued to the general public. Investors can apply for a minimum of 10 shares and a maximum of 200,000 shares under the current offering.

The issue and sales manager for the IPO is NIC Asia Capital Limited. Interested applicants can submit their applications through C-ASBA participating banks and financial institutions approved by the Securities Board of Nepal, or via the “Mero Share” online platform operated by CDS and Clearing Limited.

According to the company, the total investment in constructing and operating the hotel project stands at Rs. 3.48 billion. Based on current projections, the simple payback period is estimated at 10.86 years, while the discounted payback period is expected to reach 15.33 years. These figures indicate that the project is designed for long-term returns rather than short-term gains.

For the IPO, the company has also obtained a credit rating from Infomerics Credit Rating Nepal, which assigned an “IRN BB-” issuer rating. This rating suggests a moderate level of risk in the company’s ability to meet its financial obligations.

Market analysts note that investments in hotel and tourism-based companies are closely linked to overall tourism growth, economic stability, and visitor inflows. While Hotel Forest Inn’s IPO offers investors an opportunity to participate in Nepal’s tourism sector, they advise applicants to carefully assess the company’s financial projections, repayment period, and risk profile before making investment decisions.

With the subscription period closing today, investors who wish to participate in the offering are required to submit their applications within the deadline to be considered for allotment.