30th July 2025, Kathmandu
In a significant move set to bolster local investment and engage the Nepali diaspora, Jhapa Energy Limited has officially launched its Initial Public Offering (IPO) today, July 30 (Shrawan 14).
Jhapa Energy Launches IPO
This first phase of the IPO is specifically tailored to benefit two distinct yet crucial investor groups: project-affected locals residing in the vicinity of its solar power project in Shivasatakshi Municipality, Jhapa, and Nepalis working abroad who seek to invest in their homeland’s burgeoning renewable energy sector. This offering not only aims to raise essential capital for the company’s ambitious solar initiative but also provides a direct investment pathway for those intrinsically linked to the project’s success.
Detailed IPO Allocation and Application Structure
Jhapa Energy Limited is meticulously structuring this IPO to ensure equitable distribution and broad participation from its target investor segments. The company is issuing a total of 437,219 shares in this initial phase, broken down as follows:
380,190 shares (worth Rs. 38 million) are exclusively allocated to project-affected locals of Shivasatakshi Municipality Ward No. 4, the precise location where the solar project is currently under construction. This allocation underscores the company’s commitment to community engagement and shared prosperity.
57,029 shares (worth Rs. 5.7 million) are earmarked for Nepalis who have received official labor approval for foreign employment. This segment aims to channel remittances into productive domestic investments.
Each share in this IPO is uniformly priced at Rs. 100, reflecting the standard par value. Interested applicants must apply for a minimum of 10 shares, making it accessible to smaller investors, while the maximum application limit extends up to 5,000 shares, catering to those seeking a more substantial stake.
The local allocation is further segmented to ensure fairness and prioritize those most directly impacted by the project:
- 190,095 shares are reserved for residents living within 100 meters of the project area, recognizing their immediate proximity and potential direct impact.
- The remaining 190,095 shares are allocated to other residents within the same ward (Ward No. 4) but outside the immediate 100-meter project zone, ensuring broader community participation.
Key Application Timelines for Each Investor Group
Understanding the distinct application windows is crucial for prospective investors:
- For Project-Affected Locals: The primary application period runs from Shrawan 14 to Shrawan 28, 2082. To ensure maximum local participation, the deadline will automatically extend to Bhadra 12, 2082, if the shares are undersubscribed during the initial period.
- For Nepalis Working Abroad: This segment has a more condensed application window, from Shrawan 14 to Shrawan 18, 2082. However, similar to the local allocation, this period can be extended to Shrawan 28, 2082, if the demand falls short of the allocated shares.
Streamlined Application Process: Where and How to Apply
Jhapa Energy Limited has established multiple convenient channels to facilitate the application process for both targeted groups:
For Project-Affected Locals: Applicants are required to collect and submit physical application forms, ensuring ease of access within their communities. These forms are available at:
- Designated Himalayan Bank branches located in Duhabi, Damak (Ward 1 & 2), and Surunga.
- Machhapuchchhre Bank branches in Surunga and Damak.
Crucially, forms can also be obtained and submitted directly at Jhapa Energy’s project site office, providing maximum convenience for those living closest to the solar plant. A nominal form fee of Rs. 2 is applicable for all local applicants.
For Foreign-Based Nepalis (Non-Resident Nepalis – NRNs): The application process is streamlined through digital channels, aligning with modern financial practices:
Applicants can apply via any bank or financial institution that has been approved by the Nepal Securities Board (SEBON) and is affiliated with C-ASBA services. This widespread network ensures accessibility for Nepalis across various countries.
Alternatively, applications can be conveniently submitted through the popular online platform, Meroshare, providing a user-friendly digital interface for overseas investors.
IPO Management and Risk Assessment: Important Considerations
The entire IPO process is professionally managed by Himalayan Capital Limited, ensuring a regulated and transparent offering.
Investors should be aware of the “ICRA NP IR B-” rating assigned to this offering by ICRA Nepal. This rating indicates a high risk regarding the timely fulfillment of financial obligations. While this suggests a higher risk profile, it is common for new project-based companies, especially in the renewable energy sector, during their initial development phases. Prospective investors should conduct thorough due diligence and consider their risk appetite before investing.
Regulatory Approval and Future Plans
It is important to note that SEBON granted authorization to Jhapa Energy on Asar 31, 2082, to issue a total of 950,475 shares. Today’s current issue of 437,219 shares represents the first phase of this broader allotment. Following the successful completion of this phase for locals and Nepalis abroad, the company plans to launch a subsequent general public offering, opening investment opportunities to an even wider investor base across Nepal.
This IPO by Jhapa Energy Limited serves as a dual-purpose initiative: providing crucial capital for its solar energy project and offering a significant investment opportunity for both local residents directly connected to the project’s impact and Nepalis residing overseas who are keen to contribute to and benefit from Nepal’s rapidly expanding renewable energy sector. It embodies a step towards localized economic empowerment and leveraging diaspora investment for national development.
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