Jhapa Energy Limited (JEL), established on October 2, 2018 (Ashwin 16, 2075 B.S.)
Business: Operates a 10 MW grid‑connected solar PV plant in Jhapa, Nepal. The plant commenced commercial operation on Magh 10, 2080 B.S., i.e. January 24, 2024 .
Project cost: Approximately NPR 873 million (~Rs. 87.3 crore, or Rs. 8.73 crore per MW). Funded ~69% by debt and ~31% equity. As of mid‑April 2025 paid‑up promoter capital stands around NPR 285 million .
Financial performance: Generated about 78% of contracted power in H1 FY2024 and 72% in the first nine months of FY2025 .
Credit rating: Downgraded by ICRA Nepal – issuer rating cut from BB‑ to B‑, and long‑term loan rating downgraded to LB‑; short‑term remains A4, indicating elevated risk .
IPO Overview
SEBON Approval
Approval granted by the Securities Board of Nepal (SEBON) on Ashadh 31, 2082 B.S. (mid‑July 2025) to issue an IPO amounting to 25% of its total capital, i.e. 950,475 shares at Rs 100 each (total value ~Rs 9.50 crore) .
Post‑IPO shareholding: promoters retain 75%, public shareholders hold 25%
Phase 1 – Quotas for Locals & Foreign‑Employed Nepalis
Lokālā quota (project‑affected locals of Jhapa):
3,80,190 shares open for subscription from Shrawan 14 to Shrawan 28 (extended up to Bhadra 12 if undersubscribed).
Application limits: 10 to 5,000 shares per person .
Foreign‑employed Nepalis quota:
57,029 shares (10% of general‑public quota) offered from Shrawan 14 to Shrawan 18, extendable to Shrawan 28 if undersubscribed.
Same application limits: 10 to 5,000 shares per applicant .
Phase 2 – General Public
Remaining shares (~5,13,256) are available to the general public, including company employees and mutual funds—dates for this phase expected to be announced soon .
IPO Issue Manager: Himalayan Capital Limited, Kathmandu .
Key Dates (in Nepali calendar / Gregorian equivalents)
Phase / Group Opening Closing Extension deadline
Locals (Jhapa affected area) Shrawan 14 Shrawan 28 Up to Bhadra 12
Foreign‑employed Nepalis Shrawan 14 Shrawan 18 Up to Shrawan 28
General Public To be confirmed — —
According to ShareHub, foreign-employed quota window corresponds to July 30, 2025 – August 3, 2025, with possible extension until August 13, 2025 .
Why Consider or Be Cautious
Pros:
Opportunity to invest in Nepal’s growing solar generation sector.
Limited quota phases may increase probability of full allotment.
Risks:
Lowered credit ratings reflect higher default risk.
Generation performance has not yet reached contracted capacity consistently.
Being a small-scale project, liquidity of shares post‑listing may be limited.
How to Apply for IPO (Nepali Applicants)
1. Nguwero: Mero Share platform (via your trading/demat account).
2. Alternatively, direct application through Himalayan Capital Limited office.
3. Use your BOID, minimum apply for 10 shares, maximum 5,000 shares per quota rules .
Allotment results will typically be published shortly after IPO close via Mero Share or ShareHub platforms .
Summary
SEBON has approved Jhapa Energy’s IPO to raise Rs 9.5 crore by issuing 950,475 shares at Rs 100.
Phase I applies to locals and foreign‑employed Nepalis from Shrawan 14 onwards (late July / early August 2025).
Phase II to follow for general public—final dates pending.
Promoters will hold 75% after issue; IPO raised to reduce debt and support operations.
Credit rating downgrade suggests modest caution is warranted.
Apply via Mero Share or Himalayan Capital with required BOID.
Tags
Ipo upcoming