Formerly known as Bajaj Energy Private Limited, Bajaj Energy Limited is a leader in the energy business in India. It was established on 1st August 1988 within the provisions highlighted in the Companies Act of 1956. The certificate of incorporation was issued at the registrar of Companies in Gujarat, Nagar Haveli, and Dadra. They changed their name from private limited to limited after getting converted into a public company.
With the IPO expected to launch in 2021, the company aims to fund INR 5450 crores. The IPO offer includes a fresh issue with a value of INR 5150 crore along with an OFS including shares worth INR 300 crores delivered from Bajaj Power Ventures. The objective of the Bajaj Energy IPO is to utilise the proceeds to gain the existing 79.31% share in the LPGCL. Bajaj Energy is one of the potential firms offering IPO in 2021. According to the reports of the financial year 2018, the Power Purchase Agreement concerning the LGPCL and BEL Power Plants will continue at an average of 23 and 18 years each.
Why Consider Bajaj Energy IPO?
Bajaj Energy Limited is one of the leading power generators in Uttar Pradesh persisting extensive regulatory PPAs. They also have a feature of the take or pay option. The company claims to have secured the supply of fuel. Not just that, but the company has a potential track record of financing, developing and processing thermal power plants. The company is accurately positioned to grow as per the demand of Uttar Pradesh’s power hub. Moreover, they have a highly skilled team of managerial experts that enhances the operational strength of the company.
Bajaj Energy IPO Review
The draft for the IPO was filed with SEBI in August 2019. They even got approval quite quickly from the regulator. As per their DRHP, the Bajaj Energy Initial Public Offering will have a complete issue of fresh shares worth up to INR 5450 crore. The parent company of Bajaj Energy limited is Bajaj Power and they aim to allocate funds acquired in the IPO to make purchases worth 6, 99,36.900 equity shares in LPGCL i.e. Lalitpur Power Generation Company, which is currently under possession of Bajaj Power Ventures along with Bajaj Hindustan Sugar. The amount they will be liable to pay to get the hold of these shares would be INR 4, 972 crores. The rest of the amount will be used for meeting the general expenses and promoting the expansion of the company.
Significant Details of IPO
Though the date of the IPO is not yet declared, however, it might occur in 2021. The lead managers for Bajaj Energy IPO include IIFL Holdings, Edelweiss Financial Services, and SBI Caps. The co-book running lead manager of the issue is IDBI Capital Markets. Other than this, the promoters of the IPO include Kushagra Bajaj, Minakshi Bajaj, Shishir Bajaj and Apoorva Bajaj. Bajaj Energy Limited has power plants that have been successfully operating since 2021 with a consistent performance record of over 6 years. The power plant has been completely operational after December 2016.