Kathmandu. Hotel Forest Inn Limited located at Nagarjuna Danda in Budhanilkantha, invested by Energy Minister Deepak Khadka, has received a ‘double B minus’ issuer rating for the proposed public share issue (IPO) purpose.
Rating agency Infomerics Credit Rating Nepal has given such a rating based on financial strength assessment. In the case of Nepali companies, there is a moderate level of risk in the case of the issuing company with such a rating to meet the financial liability within the stipulated time frame.
The company has invested Rs. 10,000 crore to raise capital from the general public for the purpose of reducing the bank debt burden. The Securities Board of Nepal has applied for the issue of public shares worth Rs 400 million from 4 million units of shares at a face value of Rs 100.
Hotel Forest Inn Limited is operating holiday-in-resort Budhanilkantha in partnership with Intercontinent Hotels Limited Group.
Within a short time of its operation, the hotel was released in the last fiscal year 2081 BS. It has earned a total of Rs 136 million in 1982.
The hotel’s geographical location, collaboration with the international hotel network, experienced directors and top management level employees are among the strengths of Hotel Forest Inn.
Similarly, due to high debt, interest burden, limited income, limited number of visitors (26 percent occupancy) in the last financial year and having only one hotel are the weak points.
Spread over an area of 1.24 hectares, the hotel has a total of 104 rooms. Minister Khadka’s wife Binita Thapa owns 32 per cent stake in the hotel.
The hotel has received double B minus for Rs 2.11 billion and A-Fo rating for short-term loan of Rs 50 million for bank loan purposes. These ratings indicate a moderate level of risk regarding financial responsibility.
