Jhapa Energy signs IPO Agreement with Civil Capital Market; to float 2.66 lakh unit shares to general public

Agreement for Initial Public Offerings (IPO) is signed by Mr. Subash Bhattarai, Managing Director of Jhapa Energy Limited and Ms. Shovana Ghimire, Acting Chief Executive Officer of Civil Capital Market Limited.

Issue Manager, Civil Capital Market Limited (CCML) is a public limited company established under Company Act, 2063 and works as a Merchant Banker licensed by Securities Board of Nepal in 2009. It has started its operation from 12th May 2009. We have licenses of Issue Manager, underwriting, Share Registrar, Depository Participant, Portfolio Management Services and Corporate Advisory.

The Jhapa Energy company will float 2,66,640 no. of shares (10% of issued capital of the company) to the project affected local people and 3,99,960 no. of shares (15% of issued capital of the company) to general public including foreign Nepalese employees and company’s staffs.

Kamal Prasad Paneru, Financial Consultant of the company has said Jhapa Energy Limited is developing 10 MW Grid connected Solar power project at Shivasatakshi -4, Jhapa, Nepal. For this the company has purchased 22 Bigha of Land to develop the project.

80% of physical work progress is achieved till date. Project is expected to be commissioned in Aswin 2080.

Total project cost including Interest During Construction (IDC) is NPR 79.90 crore. Consortium led by Machhapuchchhre Bank Ltd. and Himalayan Bank Ltd. (Former Civil Bank Ltd.) will finance NPR 59.90 crore for the construction of the project.

The company has signed Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) at NPR 7.30/unit for 25 years. Total annual contract energy is 17.61 GWh.

Power will be evacuated at Panchgachi (Buluchowk) Substation of NEA which is already in operation via 960 meter 33 KVA transmission line.