Jhapa Energy’s IPO for Project-Affected Locals Closes Today
Jhapa Energy’s NPR 38M IPO for residents near its 10MW solar plant ends today, offering up to 5,000 shares per applicant.
Jhapa Energy Ltd.’s initial public offering for project-affected locals is set to close today, August 13, marking the final opportunity for residents to secure shares in the 10-megawatt grid-connected solar project.
The company is offering 380,190 ordinary shares at a par value of NPR 100 each, representing NPR 38.02 million or 10% of its NPR 380.19 million issued capital. Half of the allocation—190,095 shares—is reserved for residents within 100 meters of the project site at Shivsatkshi Municipality Ward No. 4 in Jhapa District. The remaining half is for other residents of the same ward outside the immediate impact zone.
Applicants can subscribe for a minimum of 10 shares and up to 5,000 shares. The issue has been rated ‘ICRA NP Issuer Rating Single B-’ by ICRA Nepal, indicating high credit risk regarding the company’s ability to meet financial obligations.
The total estimated cost of the solar plant is NPR 879 million, with a per-megawatt cost of NPR 87.9 million. The generation license remains valid for 22 years. The equity payback period is projected at 9.55 years, while the project-level payback is estimated at 8.06 years; discounted payback periods stand at 13.46 years and 15.66 years, respectively.
Himalayan Capital Ltd. is managing the issuance, with applications accepted at Himalayan Bank branches in Dudhe, Damak, and Surunga, as well as at the project site. Project-affected residents must pay a NPR 2 application form fee.