Royal Tulip Chitwan operator KTM Hospitality applies for IPO to raise Rs 154m

KATHMANDU: KTM Hospitality, operator of the five-star Royal Tulip Chitwan in Sauraha, has formally initiated the process for an initial public offering (IPO). The company said it submitted an application to the Securities Board of Nepal (SEBON) seeking permission to issue shares to the general public.

The company plans to issue 1.55 million ordinary shares at a face value of Rs 100 each, raising Rs 154 million, and has appointed RBB Merchant Banking as the issue and sales manager for the offering, the company said. SEBON records show KTM Hospitality is currently listed at number 18 in the regulator’s pipeline.

In a credit assessment prepared for the IPO, Care Rating Nepal assigned KTM Hospitality a BB- rating, signalling a moderate risk in the company’s ability to meet financial obligations, the report said. The resort project in Sauraha is projected to reach a total completion cost of Rs 1,700.5 million. After the public issuance, the project is expected to maintain a debt-to-equity ratio of 61.5 to 38.5, the report said.

KTM Hospitality converted from a private to a public limited company on July 9, 2024, and is issuing the IPO to strengthen its capital structure and reduce bank debt, the company said. The report noted that because the hotel industry has a long gestation period, an IPO serves as an important medium for raising long-term capital.

The resort reached full operational status in October 2025 following a soft opening earlier that year, the company said.

The company is led by chairman and chief executive officer Rameshwar Shah, who also heads KTM Group Holdings and has held leadership roles including vice president of Non-Resident Nepali Association (NRNA) and president of the Outsourcing Association of Nepal. The resort operates under a management agreement with the Royal Tulip brand of the French Louvre Hotels Group.

Spread across 4.12 acres near the Rapti River and the Kumroj Buffer Zone Community Forest, the facility offers 65 rooms, a restaurant, a health club and a helipad.

The rating agency highlighted the company’s international branding and experienced leadership as strengths but warned that fluctuations in the tourism sector and high debt levels could put pressure on liquidity in the initial years. The issuance remains subject to final approval from SEBON, which the company and local observers said could give new momentum to tourism in Chitwan.