KTM Hospitality holds 2nd AGM; decides to launch Rs 155m IPO

KATHMANDU: KTM Hospitality is set to launch an initial public offering (IPO) worth Rs 155 million. Shareholders approved the proposal at the company’s second annual general meeting (AGM) on Wednesday.

The AGM, where Nepal Rastra Bank (NRB) Deputy Governor Bam Bahadur Mishra was the chief guest, also approved changes to the company’s capital structure. Under the new plan, the authorised capital will be Rs 1 billion, issued capital Rs 775 million and paid‑up capital Rs 620 million. The IPO, worth Rs 155 million to the general public, represents 20% of the company’s paid‑up capital.

KTM Hospitality currently operates the 65‑room Royal Tulip Chitwan in Sauraha, which the company said has set new standards in the hotel business in the popular tourist destination.

Senior artist and KTM Group brand ambassador Santosh Pant attended the AGM. The company has appointed former Secretary to the Government of Nepal, Kewal Prasad Bhandari, as an independent director.

KTM Group Chairman Rameshwar Shah said Nepal’s hospitality industry has made a significant contribution to the economy and that continued investment has highlighted the sector’s potential. “We are bringing 20% IPO to take the general public along as partners,” he said.

At the programme, NRB Deputy Governor Mishra said Nepal’s tourism sector has taken a remarkable leap and that the central bank is continuously supporting its development and promotion. He added that the central bank issued directives to minimise damage to the sector during the Covid19 pandemic and the Gen-Z protests.

The IPO is being viewed as a step for the development of Nepal’s tourism and hospitality sector and is expected to boost public investment in hotels and contribute to the expansion of tourism infrastructure.

Chairman Shah also highlighted the company’s focus on local resources during construction and staffing. “Maximum use of local products was made during the hotel’s construction. Similarly, according to the policy of utilising local manpower,” he said. “In the hotel opened in Chitwan in collaboration with France’s Louvre Hotels Group, most of the manpower is Nepali. Technical manpower was taken in coordination and consultation with the brand.”

Royal Tulip Chitwan, a premium brand of France’s Louvre Hotels Group, operates more than 1,756 hotels in over 70 countries and is known for combining local culture with international standards; KTM Hospitality said the Chitwan property followed that model.