IPO for General Public: Jhapa Energy Limited to Issue 4,73,336 Units IPO Shares from Bhadra 20

Jhapa Energy Limited will open its Initial Public Offering (IPO) for the general public on the 20th Bhadra, 2082. The company is issuing 4,73,336 unit shares at a par value of Rs. 100 per unit. The early closing date for the IPO is the 24th Bhadra, 2082, but if the issue is not fully subscribed by then, the deadline will be extended to the 3rd of Ashwin, 2082.

The company's issued capital is Rs. 38.01. Of this, 25%, 950,475 unit shares, will be issued to the public. Out of the total issue capital, 10%, 3,80,190 unit shares worth Rs. 3.80 Crores, were allotted to the project-affected locals of Jhapa districts. The remaining 15% of the issued capital, 5,70,285 unit shares, will be offered to the general public. Of this general public issue, 10%, a total of 57,029 unit shares, were already allotted to the Nepalese citizens working abroad.

Of the general public issue, 2%, i.e., 11,406 units, have been set aside for the employees of the company, and 5% of the total offered shares, i.e., 28,514 units, have been set aside for the mutual funds. The remaining 4,73,336 units are for the general public, which will be opened on 20th Bhadra.

Himalayan Capital Limited has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 5,000 units.

ICRA Nepal has downgraded the credit rating of Jhapa Energy Limited (JEL), indicating increased financial risk. The issuer rating has been lowered from [ICRANP-IR] BB- to [ICRANP-IR] B-, suggesting a high risk of default in the timely repayment of financial obligations. Additionally, the company’s long-term loan rating has been reduced to [ICRANP] LB- from [ICRANP] LBB-, while its short-term loan rating remains unchanged at [ICRANP] A4.

Jhapa Energy Limited (JEL), established on October 2, 2018, has operated a 10-MW solar photovoltaic (PV) plant in Jhapa district, Koshi Province, since January 24, 2024. With a paid-up capital of around NPR 285 million (as of mid-April 2025), fully held by promoters, the project was commissioned at NPR 873 million, funded approximately 69% through debt. The plant achieved about 78% of contracted energy generation in the first half of FY2024 and 72% in the first nine months of FY2025. The major promoters hold small individual stakes, while about 83.2% is held collectively by other shareholders. The company plans to issue an IPO to reduce its debt burden.

Offer Letter