Confidence Power and Energy PLC plans to invest Tk4,159 crore in 400 megawatts of solar power projects by 2028, as the company seeks to raise Tk400 crore through an initial public offering (IPO) to diversify beyond heavy fuel oil-based generation and build a larger, long-term energy business.
“Essentially, the decision to invest Tk2,150 crore anew was made to meet the country’s future power needs and diversify our existing portfolio basket,” Imran Karim, chairman of Confidence Group, said while presenting the company’s investment plans at an IPO roadshow at a city hotel on Sunday evening.
The company plans to commission three solar plants in July 2028, adding 400MW to its existing 393.36MW power generation capacity. It aims to expand total operating capacity to 2,160MW by 2035 through further investments in solar, gas-fired generation, battery storage and fuel infrastructure.
The proposed IPO will partly finance two 100MW solar projects in Cox’s Bazar North and Mongla, Bagerhat, while a separate 200MW project in Fatikchhari, Chattogram, will be developed without IPO funding.
The expansion is expected to create a second stream of contracted revenue alongside the company’s existing heavy fuel oil (HFO)-fired plants, whose power purchase agreements with the Bangladesh Power Development Board (BPDB) expire in 2033-34. The solar projects are expected to have 20-year contracts running from 2028 to 2048.
Solar financing and IPO proceeds
The Cox’s Bazar North project is estimated to cost Tk1,087.5 crore, while the Mongla project will require Tk1,062.6 crore. The 200MW Fatikchhari plant has an estimated cost of Tk2,008.7 crore.
Of the proposed Tk400 crore IPO proceeds, Tk230 crore will go towards implementing the Cox’s Bazar project, while Tk102 crore will be invested as equity in Confidence and Doreen Power, the Mongla project.
Another Tk60 crore will be used to partially repay loans from City Bank and BRAC Bank, with the remaining Tk8 crore earmarked for IPO expenses.
In total, Tk332 crore from the IPO will partly finance the Cox’s Bazar and Mongla projects, supplemented by Tk369 crore from the company’s own sources. The Fatikchhari project will receive no IPO proceeds.
The company also plans to use bank loans, capital market funding, preference shares and shareholders’ contributions to finance the solar investments. Banks are expected to finance 75 percent of the estimated Tk2,150 crore cost of the first 200MW project, or around Tk1,612 crore, according to the information presented.
The proposed use of IPO proceeds remains subject to regulatory approval and the final issue size.
Rising demand underpins investment case
Karim said the new investments were intended to meet future electricity demand while broadening the company’s business beyond its existing generation portfolio.
“Given the rising demand, power generation must increase. However, without new gas discoveries, expanding gas-based power generation will not be feasible. This creates a massive opportunity for solar energy,” he said, according to a report on his remarks during a recent visit by media representatives and investors to the company’s power plants in Bogura.
The company’s presentation highlighted the widening gap between Bangladesh’s installed power capacity and the electricity actually available to consumers. Of 28,484MW of derated installed capacity, around 19,400MW can be generated at peak, while approximately 18,500MW reaches consumers after transmission and distribution losses.
The presentation also cited more than 6,600MW of gas-fired power capacity lying idle for lack of fuel. It projected peak demand to rise from 17,100MW in 2025 to nearly 41,000MW by 2040.
These projections underpin the company’s case for expanding solar generation and exploring new energy-related businesses. The company estimates its 400MW solar pipeline could produce around 800 gigawatt-hours of electricity annually, avoid about 500,000 tonnes of carbon dioxide emissions a year and contribute roughly 9 percent of the government’s 4,500MW target for ground-mounted solar by 2030.
The figures are indicative company estimates.
From 393MW to 2,160MW by 2035
Confidence Power and Energy’s 10-year roadmap envisages operating capacity rising to around 1,000MW by 2029, 1,960MW by 2032 and 2,160MW by 2035.
Beyond the planned solar projects, the company is exploring LNG procurement and trading, floating storage and regasification units, gas transmission infrastructure, efficient gas-fired and regasified LNG-based power plants, and battery energy storage systems.
The proposed diversification would reduce the company’s dependence on a single generation technology and position it to participate in other parts of the energy value chain.
However, projects beyond the 400MW solar pipeline remain indicative. Their implementation will depend on regulatory approvals, financing arrangements and the availability of partners.
The company expects its existing HFO plants and new solar assets to generate revenue simultaneously from 2028. Solar contracts would provide a revenue horizon extending to 2048, although any extension of the HFO plants’ contracts beyond 2033-34 remains contingent on government policy and agreement with BPDB.
Earnings projected to rise, dividend remains uncertain
Management expects net profit after tax to rise from Tk477 crore in FY2025-26 to Tk539 crore in FY2026-27, Tk907 crore in FY2028-29 and Tk976 crore in FY2030-31.
Revenue is projected to increase from Tk1,771 crore in FY2025-26 to Tk3,796 crore by FY2030-31.
Earnings per share, currently around Tk32, are projected to reach Tk60 by FY2030-31, while net asset value per share is expected to rise from Tk193 to Tk415 over the same period.
These projections suggest substantial potential earnings growth, but they are management estimates based on current assumptions and are not a guarantee of future performance.
The company presented illustrative share valuations ranging from Tk180 to Tk582, depending on the valuation method. The estimates included Tk193 a share based on net asset value, Tk317 using discounted cash flow and Tk582 using peer-company price-to-earnings multiples.
The company stressed that these figures do not indicate the IPO offer price, which will be determined through the regulated process.
For prospective investors, dividend policy remains an important unanswered question. The company’s financial information shows retained earnings of Tk2,665 crore, but it has not recommended dividend payments to shareholders. No specific dividend rate or future dividend policy was announced at the roadshow.
The company reported total assets of Tk5,163 crore as of June 2026, up around 22 percent from a year earlier, and outstanding bank loans of Tk818 crore. Its FY2025-26 revenue was Tk1,771 crore, with net profit after tax of Tk477 crore.
The projected increase in earnings and asset value could strengthen the investment case, but actual shareholder returns will depend on business performance, financing costs, future capital requirements and the company’s eventual dividend decisions.
Four existing plants underpin the business
Established in 2017, Confidence Power and Energy operates four HFO-fired plants with a combined capacity of 393.36MW. These comprise two 113MW plants in Bogura, a 113MW plant in Rangpur and a 54.36MW plant in Chattogram.
With 339MW of capacity in North Bengal, the company describes itself as the region’s largest independent power producer. All four plants were operational by 2019 and sell electricity to BPDB under 15-year agreements.
The company says its plants achieve conversion efficiency of around 45 percent, supported by MAN and Rolls-Royce Bergen engines and waste-heat recovery systems.
Seven steam turbines generate about 24.5MW of additional electricity from waste heat without consuming extra fuel. The company also manages its own fuel procurement, storage and transportation network, with 50,000 tonnes of integrated storage and transport capacity.
This operating infrastructure and the existing contracted revenue base provide the foundation for the company’s planned expansion, although the new solar projects will require substantial additional investment and financing.
Confidence Group, founded in 1991 with the country’s first private-sector cement plant, reported total assets of $1.26 billion and revenue of $526 million in FY2024-25. It employs more than 4,500 people across over 20 companies and brands, with businesses spanning cement, infrastructure, paints, batteries and telecommunications.
Power, added to the group in 2017, is now its flagship business.