Jhapal Energy IPO Opens: Your Guide to Investment Opportunities in Renewable Energy!
Jhapal Energy Limited is set to launch its highly anticipated Initial Public Offering (IPO) on Friday, Bhadra 20th. This IPO presents a valuable investment opportunity for both new and seasoned investors interested in the Nepalese stock market and the booming renewable energy sector. This IPO is a chance to be a part of sustainable energy growth.
The company is issuing shares at a face value of NPR 100 per share. A total of 473,336 shares will be available for the general public. Previously, Jhapal Energy issued 380,000 shares to local residents affected by the project and 57,029 shares to Nepali citizens working abroad. This article provides an overview of this exciting IPO, including how to apply for shares and the financials behind Jhapal Energy.
How to Apply for the IPO?
The IPO application period begins on Bhadra 20th and closes on Bhadra 24th. If the shares are not fully subscribed within this initial period, the deadline will be extended to Asar 3rd. Investors can apply for the IPO through C-ASBA compliant banks and financial institutions and through Mero Share. Himalayan Capital is acting as the issue manager for this IPO.
Understanding the IPO Rating and Risk
ICRA Nepal, the credit rating agency, has assigned Jhapal Energy an “ICRANP IR B-” rating. This rating suggests a high degree of risk associated with the company’s ability to meet its obligations. This highlights the importance of due diligence and understanding the risks involved before investing in this IPO. Before you invest, research the company’s financial performance and understand the risks associated with the IPO.
How Many Shares Should You Apply For?
With only 473,336 shares available for the public, the IPO is expected to be heavily oversubscribed. The minimum application is for 10 shares. It is recommended to apply for the minimum number of shares, as the chances of getting allotted more shares are slim. Investors can apply for a maximum of 5,000 shares.
About Jhapal Energy: Project Overview
Jhapal Energy was established under the Companies Act, 2063. Its registered office is located in Birtamod, Jhapa. The primary business operations are conducted at the registered office and at the solar energy production center in Shivsatakshi Municipality, Ward No. 4.
Key Objectives and Project Details
The primary objective of Jhapal Energy is to develop, construct, and operate solar energy projects. The company was registered as a public limited company on Ashvin 6, 2075, by the Office of the Company Registrar. Jhapal Energy operates a 10 MW grid-connected solar power project in Shivsatakshi Municipality, Jhapa. The energy company is a significant player in the renewable energy sector.
Capital Structure and Financial Projections
The authorized capital of the company is NPR 400 million, with issued capital of NPR 380.19 million. The paid-up capital is NPR 285.142 million. After the IPO, the promoters will hold 75% of the shares, 10% will be held by the local residents, and 15% will be allocated to the general public.
The company has no plans to increase its capital until the fiscal year 2083–84. It projects a profit of NPR 29.2 million by the end of the current fiscal year and NPR 35.2 million in the fiscal year 2083–84.
Earnings per share (EPS) is projected to reach NPR 7.69 and net worth per share to reach NPR 103.07 by the end of the current fiscal year. By the fiscal year 2083–84, the projected EPS is NPR 9.30, and the net worth per share is NPR 112.34. Investors should review these figures when evaluating this investment opportunity.
Purpose of the IPO
The IPO is intended to raise capital for various purposes, including providing an investment opportunity to local residents, using the funds raised to repay project loans, maintaining the capital structure as specified in the company’s articles of association, and funding the construction expenses of the project. The IPO is a strategic move designed to boost the company’s growth and development.
Financial Performance
According to the unaudited financial statements as of the end of Chaitra of the previous fiscal year, the company had accumulated losses of NPR 13.1 million. During the same period, the company’s net worth per share was NPR 95.40. At the end of the previous fiscal year, the company had accumulated losses of NPR 348,000. The net worth per share was NPR 100.12, and the earnings per share were 50 paisa. The cost per megawatt for this project is NPR 87.9 million.
Disclaimer: Investing in the stock market involves risks. Conduct thorough research and consider seeking advice from a financial advisor before making any investment decisions.
