In this inaugural phase, the firm is offering shares to individuals from the project-affected regions as well as to Nepalis working abroad, starting from Shrawan 14, 2082 BS. Jhapa Energy is issuing 3,80,190 shares to residents of the impacted areas within Jhapa district. Should the offering be fully subscribed, the IPO for locals will conclude on Shrawan 28, 2082 BS. Conversely, if it remains under-subscribed, the application deadline will be pushed to Bhadra 12, 2082 BS. Eligible locals may apply for as few as 10 shares and up to a maximum of 5,000 shares.
Additionally, the company will offer 57,029 shares (10 percent of the general public’s allocation) to Nepalis employed abroad starting from Shrawan 14, 2082 BS. If fully subscribed, this portion of the IPO will close on Shrawan 18, 2082 BS; however, should it be under-subscribed, applications will be accepted until Shrawan 28, 2082 BS. Foreign-employed Nepalis interested in participating can subscribe for a minimum of 10 shares and a maximum of 5,000 shares.
Furthermore, in the subsequent phase, the hydropower firm will sell shares to the general public, including the company’s employees and mutual fund schemes. Overall, the hydropower company plans to offer 9,50,475 shares in its initial public offering (IPO), with a par value of Rs. 100, totaling Rs. 9.50 crores.
The Securities Board of Nepal (SEBON) authorized this offering on Ashad 31, 2082 BS. The company has appointed Himalayan Capital Limited as the issue and sales manager for the IPO, and an agreement has been formalized between the company and Himalayan Capital regarding this role.
Once the IPO is fully subscribed, the general public (including local residents) will hold a 25 percent stake in the company, while the promoters will retain the remaining 75 percent.
About Jhapa Energy Limited: Established on October 02, 2018, as a public limited entity, Jhapa Energy Limited currently operates a 10-MW Jhapa Solar PV plant in Jhapa district as of January 24, 2024. This project is a photovoltaic solar initiative, with total costs amounting to Rs. 87.3 crores, leading to a per MW cost of Rs. 8.73 crores.
