IPO Proposal of Jhapa Energy Limited Approved by SEBON

The Securities Board of Nepal (SEBON) has granted the Initial Public Offering (IPO) proposal of Jhapa Energy Limited. The approval was issued on 31st Ashadh, 2082.

According to the approved proposal, the company will issue a total of 950,475 shares to the general public, which accounts for 25% of its total issued capital. The shares will be offered at a par value of Rs. 100 per unit.

Himalayan Capital Limited has been designated as the issue and sales manager for this public offering.

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.