Jhapa Energy Limited is launching the Initial Public Offering (IPO) of 3,80,190 IPO shares for the residents impacted by the project in Jhapa District, along with 57,029 IPO shares available to Nepali expatriates, starting today, 14th Shrawan, 2082.
The IPO for residents of Jhapa District will run from 14th Shrawan to 28th Shrawan, 2082, with a potential extension until 12th Bhadra if the shares aren’t fully subscribed. For Nepalis abroad, the IPO also opens on 14th Shrawan but concludes on the 18th Shrawan, 2082, unless extended to the 28th Shrawan due to lack of subscriptions.
The company’s issued capital totals Rs. 38.01. Of this, 25%, equivalent to 950,475 shares, will be offered to the public. Out of the overall issued capital, 10%, or 3,80,190 shares valued at Rs. 3.80 Crores, will be designated for the project-affected locals of Jhapa. The remaining 15% of the issued capital, comprising 5,70,285 shares, will be available to the general public at a later date.
From this public offering, 10%, amounting to 57,029 shares, has been earmarked for Nepali citizens employed abroad, with availability beginning today.
For both the locals impacted by the project and the Nepali citizens overseas, the minimum application quantity is 10 shares, while the maximum is 5,000 shares.
Himalayan Capital Limited has been chosen as the issue manager for this IPO.
ICRA Nepal has revised down the credit rating of Jhapa Energy Limited (JEL), reflecting heightened financial risk. The issuer rating has been downgraded from [ICRANP-IR] BB- to [ICRANP-IR] B-, indicating a significant risk of default on timely financial obligations. Furthermore, the company’s long-term loan rating has been decreased to [ICRANP] LB- from [ICRANP] LBB-, whereas its short-term loan rating remains stable at [ICRANP] A4.
Established on October 2, 2018, Jhapa Energy Limited (JEL) operates a 10-MW solar photovoltaic (PV) facility in Jhapa district, Koshi Province, since January 24, 2024. With a paid-up capital of approximately NPR 285 million (as of mid-April 2025), entirely held by the promoters, the project was commissioned at NPR 873 million, with around 69% financed through debt. The plant achieved about 78% of its contracted energy generation during the first half of FY2024 and 72% in the initial nine months of FY2025. The main promoters maintain small individual holdings, while roughly 83.2% is collectively owned by other investors. The company intends to launch an IPO to alleviate its debt load.
