City Hotel Limited (CITY) has officially announced the issuance of 80% right shares to its existing shareholders. This move is designed to strengthen its capital base and support future growth in the hotel and tourism industries.
Key Details of the Right Share Issuance
| Particulars | Details |
|---|---|
| Company | City Hotel Limited |
| Sector | Hotel & Tourism |
| Face Value per Share | Rs. 100 |
| Total Right Shares | 13,192,000 units |
| Worth of Right Shares | Rs. 1.67 Arba |
| Ratio | 1:0.80 (80% right shares) |
| Current Paid-up Capital | Rs. 1.67 Arba |
| Paid-up Capital After Issue | Rs. 3.01 Arba |
| Issue Manager | Prabhu Capital Limited |
| Application Open Date | 23rd Bhadra, 2082 |
| Application Closing Date | 12th Ashwin, 2082 |
| Book Closure Date | 27th Shrawan, 2082 |
What Does the 80% Right Share Mean?
The ratio 1:0.80 means that for every 100 shares an investor currently owns, they can apply for 80 additional shares at the face value of Rs. 100 per share.
For example, if you hold 500 shares of CITY, you can apply for 400 right shares.
Objective of the Right Share Issue
City Hotel Limited plans to utilize the additional capital raised from this right share issue to:
Strengthen its financial position.
Invest in hotel service expansion and modernization.
Enhance infrastructure to cater to the growing tourism sector in Nepal.
Eligibility
OnlyĀ investors who held shares ofĀ City Hotel Limited beforeĀ the book closure date (27th Shrawan, 2082) are eligible to apply.
Applications can be submitted through ASBA-approved banks or the Mero Share portal.
Why This Matters for Shareholders
This right share provides an affordable opportunity for existing shareholders to increase their investment at face value.
With the paid-up capital increasing from Rs. 1.67 Arba to Rs. 3.01 Arba, the company is expected to be financially stronger, which could support future growth and performance.
Important Dates
Book Closure Date: 27th Shrawan, 2082
Application Opening: 23rd Bhadra, 2082
Application Closing: 12th Ashwin, 2082
Conclusion
City Hotel Limitedās decision to issue 80% right shares worth Rs. 1.67 Arba is a strategic move to enhance its capital strength and expand operations in Nepalās hospitality sector. For shareholders, this is a chance to buy additional shares at Rs. 100 and increase their stake in a growing hotel company.
