The Securities Board of Nepal (SEBON) has approved Jhapa Energy Limited’s Initial Public Offering (IPO) application. This endorsement was granted on the 31st of Ashadh, 2082.
Per the authorized proposal, the company is set to release a total of 950,475 shares to the public, which represents 25% of its overall issued capital. The shares will be available at a nominal value of Rs. 100 each.
Himalayan Capital Limited has been appointed as the manager for this public share issuance.
ICRA Nepal has revised Jhapa Energy Limited’s (JEL) credit rating downwards, indicating a heightened financial risk. The issuer rating has been reduced from [ICRANP-IR] BB- to [ICRANP-IR] B-, reflecting a significant chance of default on timely financial obligations. Furthermore, the long-term loan rating of the company has been lowered to [ICRANP] LB- from [ICRANP] LBB-, while the short-term loan rating remains stable at [ICRANP] A4.
Founded on October 2, 2018, Jhapa Energy Limited (JEL) has been managing a 10-MW solar photovoltaic (PV) plant located in Jhapa district, Koshi Province, since January 24, 2024. With a paid-up capital of approximately NPR 285 million (as of mid-April 2025), fully owned by promoters, the project was initiated with a budget of NPR 873 million, financed roughly 69% through loans. The plant has met around 78% of its contracted energy output in the first half of FY2024 and 72% during the first nine months of FY2025. The principal promoters maintain minor individual shares, while about 83.2% is held collectively by other investors. The company aims to launch an IPO to alleviate its debt obligations.
