Jhapa Energy Limited Opens IPO for Project-Affected Locals and Foreign Nepalese Immigrants From Today

Jhapa Energy Limited is opening the issue of an Initial Public Offering (IPO) of 3,80,190 units of IPO shares to the project-affected locals of Jhapa District and 57,029 units of IPO Shares to Foreign Nepalese Immigrants from today, 14th Shrawan, 2082.

The IPO for locals in Jhapa District will open from 14th Shrawan to 28th Shrawan, 2082, with a possible extension until 12th Bhadra if not fully subscribed. For Nepalese working overseas, the IPO is also open from the 14th Shrawan but will close on the 18th Shrawan, 2082, unless extended until the Shrawan 28 in the case of under-subscription.

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, will be allocated to 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 at a later date.

Of this general public issue, 10%, a total of 57,029 unit shares, have been set aside for Nepalese citizens working abroad, and the issue for this category will open from today.

For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 5,000 units.

Himalayan Capital Limited has been appointed as the issue manager for the IPO issuance.

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.