Kathmandu. KTM Hospitality Limited, which operates the five-star luxury resort Royal Tulip Chitwan in Sauraha, is going to issue an initial public offering (IPO) of Rs 15.50 crore.

The second general meeting of the company held on Wednesday has approved an important proposal of IPO along with change in capital structure. The meeting was presided over by Deputy Governor of Nepal Rastra Bank Bam Bahadur Mishra.

According to the approved proposal, a new capital structure of the company has also been prepared. The company has an authorized capital of Rs 1 billion, issued capital of Rs 77.50 crore and paid-up capital of Rs 62 crore. The company is going to issue an initial public offering (IPO) of Rs 15.50 crore. This is 20 percent of the total paid-up capital of the company.

Currently, KTM Hospitality operates a 65-room five-star luxury resort Royal Tulip Chitwan in Sauraha. This luxury resort operated in Sauraha, famous as a tourist destination, has set a new standard in the hotel business.

The AGM was graced by the special presence of Mr. Santosh Panta, Brand Ambassador of KTM Group. Similarly, Kewal Prasad Bhandari, former secretary of the government of Nepal, has been appointed as an independent director of the company.

Rameshwor Shah, chairman of the organization, said that the hospitality industry has made a significant contribution to the country’s economy. According to Shah, the continuous increase in investment in the hospitality sector has unleashed the potential of this sector.

He also said that KTM Hospitality is moving ahead by involving the general public. “We are going to bring 20 percent IPO to take the general public as well,” he said.

On the occasion, Deputy Governor of Nepal Rastra Bank Bam Bahadur Mishra said that Nepal’s tourism sector has made a significant leap. He said the central bank has been continuously supporting the development and promotion of tourism sector. He said that the central bank has worked through directives to minimize the damage caused to the sector during Covid or during the Genji movement.

The IPO issuance of KTM Hospitality is a significant step in the development of tourism and hospitality sector in Nepal. It is expected to increase public investment in the hotel industry and contribute to expansion of tourism infrastructure.