Kathmandu. Jhapa Energy Limited is going to open the IPO issue and sale from July 15. In the first phase, the company is going to issue an IPO for the local residents of the project-affected areas and Nepalis in foreign employment.
The company is issuing 380,190 units of ordinary shares worth Rs 100 per share worth Rs 380.019 million i.e. 10 percent of the issued capital of Rs 381.9 million for the local residents of the project-affected areas.
Out of the total shares allotted for the local residents, 190,095 units will be allotted to the residents of the area around 100 meters from the site and project area where the solar power project is being constructed and operated in Shivasatakshi Municipality Ward No. 4 of Jhapa district, while the remaining 190,095 units will be allotted to the residents of Shivasatakshi Municipality Ward No. 4 of Jhapa district.
A total of 57,029 units of ordinary shares worth Rs 5,702,900, representing 10 per cent of the shares allocated for general investors, will be issued for Nepalis working abroad after obtaining labour clearance from the concerned authorities of the Government of Nepal.
Applications can be made for a minimum of 10 units and a maximum of 5,000 units. The local residents of the project-affected areas will be able to apply till August 15 and they can apply till August 30. Similarly, Nepalis in foreign employment can apply as soon as July 15 and late till July 15.
ICRA Nepal has given the company icra NP issuer rating single B minus in the rating for the IPO issue. This indicates that there is a high risk in the company’s ability to bear liability.
Nepalis in foreign employment can apply through C-ASBA system from all C-ASBA member banks and financial institutions and their designated branch offices approved by the Securities Board of Nepal.
Himalayan Capital Limited is the issue manager of the company. Local residents can apply from Himalaya Bank’s branches and project sites in Dudhe, Damak and Surunga. Residents of the project-affected areas will have to pay a fee of Rs 2 for the application form to get the share purchase application.
