27th August 2025, Kathmandu
Jhapa Energy Limited is opening its second-phase Initial Public Offering (IPO) to the general public on September 5 (Bhadra 20).
Jhapa Energy to Issue IPO
The company, which has already allotted shares to project-affected locals and Nepalis working abroad, is now offering the remaining shares to the public to raise capital and broaden its ownership base. The IPO is managed by Himalayan Capital Limited.
IPO Details Jhapa Energy Limited is issuing a total of 950,475 shares at a face value of NPR 100 per share, amounting to a total value of NPR 95,047,500. This IPO is an important step for the company in its capital expansion and operational strengthening.
The shares are allocated among various groups in accordance with SEBON regulations:
- Project-Affected Locals: 380,190 shares (already allotted).
- Nepalis Working Abroad: 57,029 shares (already allotted).
- Mutual Funds: 28,514 shares.
- Employees: 11,406 shares.
- General Public: 473,336 shares.
The IPO for the general public is an opportunity for retail investors to participate. The minimum application is 10 shares and the maximum is 5,000 shares. The subscription period will start on Bhadra 20, 2082, and is set to close on September 9 (Bhadra 24), although it may close earlier if it’s fully subscribed.
Application Process Interested investors can apply for the IPO through ASBA-approved banks and financial institutions or via the Mero Share online platform, operated by CDS and Clearing Limited. The online platform, in particular, offers a convenient and paperless way for individuals to submit their applications from anywhere with internet access.
The Securities Board of Nepal (SEBON) plays a crucial role in regulating and supervising the issuance of securities, ensuring transparency, and protecting investor interests in the capital market. SEBON’s approval of this IPO signifies that the company meets the required regulatory standards for public issuance.
Significance of the IPO
The public offering of Jhapa Energy Limited’s shares is a significant event for Nepal’s energy sector. As a hydropower company, Jhapa Energy is a part of a critical sector for national development and energy independence. The capital raised from the IPO will contribute to the company’s financial stability and support its projects, helping to meet the country’s growing electricity demand.
For investors
The IPO provides an opportunity to invest in a sector with the potential for long-term growth and stable returns. Hydropower stocks are often viewed as a cornerstone of the Nepali economy, and participation in this IPO allows investors to be part of that growth story. The affordable entry point makes this opportunity accessible to a wide range of investors, including those with limited capital. The inclusion of institutional investors like mutual funds also helps to ensure long-term stability and confidence in the company’s shareholding structure.
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