City Hotel Limited Completes Allotment of Unsold Rights Shares, Announces Separate Cut-Off Prices for Three Investor Categories
Author
NEPSE TRADING
City Hotel Limited has formally completed the allotment process for its unsold rights shares, concluding a multi-phase procedure that involved sealed bids from interested investors. The company had invited bids for unsold promoter, employee (lock-in), and ordinary (non-lock-in) shares after they remained unsubscribed during the rights issue. The allotment was finalized on Mangsir 11 (November 26, 2025), following a meeting of the company’s board.
Earlier, the company had opened 21,50,418 units of unsold rights shares for bidding. These included 19,89,999 units from the promoter group, 6,000 units from employees under lock-in, and 1,54,419 units under the ordinary non-lock-in category. The sealed bid submission window had remained open from Kartik 23 to Kartik 30.
The sealed bids were opened on Mangsir 5, and allotment decisions were made after evaluating the price proposals received from competing applicants. City Hotel Limited reported that the bids varied significantly across investor categories, which led to the determination of separate cut-off prices. The final cut-off rates set by the company are as follows:
Promoter Category: Rs. 251
Employee Lock-In Category: Rs. 306.10
Ordinary Non-Lock-In Category: Rs. 436
Applicants who bid at or above these cut-off prices have been allotted shares on a proportional basis, depending on their bid quantity and the demand within each category.
The hotel has also initiated the refund process for applicants who did not receive allotment. Refunds are being processed through the IPS fund transfer system starting Mangsir 12. Applicants have been advised to verify whether the refund amount has been credited to their bank accounts, and contact Prabhu Capital Limited, Kamaladi, if discrepancies are found.
City Hotel Limited has also notified that the complete allotment details are available on the website of Prabhu Capital, the issue manager. The company believes that conducting the allotment through a transparent bidding and evaluation process will help strengthen investor confidence and maintain corporate governance standards.
