The company is planning to issue an IPO of 20 percent of its total paid-up capital.
What you should know
KTM Hospitality Limited, which operates Royal Tulip Chitwan in Sauraha, Chitwan, is planning to launch an initial public offering (IPO) of Rs 155 million.
The company's second general meeting has passed an important proposal for an IPO with a change in capital structure. The meeting has approved the proposal for an IPO.
According to the passed proposal, the company's new capital structure has also been prepared. Authorized capital will be Rs 1 billion, issued capital Rs 775 million and paid-up capital Rs 620 million. The company is going to issue an IPO of Rs 155 million to the general public. The company is going to issue 20 percent of the total paid-up capital through the IPO.
KTM Hospitality is currently operating a five-star luxury resort, Royal Tulip Chitwan, with a capacity of 65 rooms in Sauraha, Chitwan. The company claims that this luxury resort, operated in Sauraha, a famous tourist destination, has set new standards in the hotel business. The company has appointed former Secretary to the Government of Nepal Kewal Prasad Bhandari as an independent director.
Chairman of the organization, Rameshwor Shah, said that Nepal's hospitality industry has made a significant contribution to the economy. Chairman Shah says that the continuous increase in investment in the hospitality sector has revealed the potential in this sector.
Similarly, he said that KTM Hospitality is going to move forward by involving the general public. ‘We are going to bring a 20 percent IPO to involve the general public in partnership,’ he said.
Nepal Rastra Bank Deputy Governor Bam Bahadur Mishra said that Nepal’s tourism sector has made significant strides. He said that the central bank is continuously supporting the development and promotion of the tourism sector. He said that the central bank has worked through instructions to minimize the damage caused to this sector, be it during Covid or during the Genji movement.
Spread over an area of more than 4 acres, this resort has 65 beautifully designed residences. The IPO issuance of KTM Hospitality is considered an important step in the development of Nepal’s tourism and hospitality sector. It is expected to increase public investment in the hotel industry and contribute to the expansion of tourism infrastructure.
‘Maximum use of indigenous products was made during the construction of the hotel. Similarly, Timalsina, who has gained international experience, has been appointed in line with the policy of using indigenous manpower,' said KTM Hospitality Limited Chairman Shah, 'Most of the manpower in the hotel opened in Chitwan in collaboration with the famous Louvre Hotels Group of France is Nepali. The technical manpower has been hired in coordination and consultation with the brand.'
Spread over an area of more than 4 acres, this resort located on the banks of Chitwan National Park has 65 beautifully designed accommodations. Special bridge villas, water villas and loft suites offer captivating views and luxurious facilities.
Royal Tulip Chitwan has set a main objective of preserving local culture and traditions by providing world-class quality and excellent hospitality. It is believed that this will not only increase foreign exchange earnings but also make a significant contribution to local employment generation, capacity development and cultural preservation.
