Kailash Helicopter Services Limited has appointed Muktinath Capital Limited as the issue manager for the Initial Public Offering (IPO). The issuance will include 10% of the company’s issued capital, equivalent to 3.5 lakh ordinary shares. These shares will be made available to the general public at a premium price.
Kailash Helicopter’s Managing Director, Mr. Pratap Jung Pandey, and Mr. Kabindra Dhoj Joshi, the Chief Executive Officer of Muktinath Capital, signed the agreement for the IPO issuance
Kailash Helicopter has shown consistent profitability since its inception, even during the challenging period of the COVID-19 pandemic in the fiscal year 2076/77.
The company has been distributing annual dividends to its investors, including a 5% bonus share and a 10% cash dividend from the profits of the fiscal year 2079/80. The company plans to add one helicopter in 2025 and one more in 2027, reaching a total of five helicopters in operation.
In Nepal, helicopter services play a crucial role in providing transportation to remote and mountainous regions, where access by road may be challenging. These services are often utilized for medical evacuations, trekking and mountaineering support, and scenic flights over the breathtaking landscapes of the Himalayas. The demand for helicopter services in Nepal has increased in recent years, catering to both tourists and locals who seek efficient and time-saving transportation options in the challenging terrain of the country.
IPO is a significant financial event in which a privately held company makes its shares available for public purchase and trading on a stock exchange for the first time. Companies opt for IPOs to raise capital for various purposes, such as funding expansion, repaying debt, or enabling existing shareholders to sell their stakes. During an IPO, the company issues new shares to the public, and these shares become tradable on the open market. Investors, including institutional and individual buyers, have the opportunity to purchase shares and become partial owners of the company.
IPOs are closely watched in the financial markets as they not only provide companies with access to additional funding but also serve as a way for investors to participate in the growth potential of newly public enterprises. The success of an IPO is often gauged by the level of investor interest, the company’s valuation, and its subsequent performance in the stock market.
