The Bajaj Energy IPO launch news has brought a new buzz among investors. Bajaj Energy Ltd (BEL) is one of the largest private-sector thermal power generation firms in Uttar Pradesh. It has been planning to raise funds through Initial Public Offer (IPO) since 2019.
The company submitted its draft to the Securities and Exchange Board of India (SEBI) in April 2019 to raise Rs. 5,450 crores. SEBI showed a green flag to raise Rs. 5,450 crores through IPO.
An IPO offered by Bajaj Power Ventures, the parent company of Bajaj Energy, includes a new issue worth Rs. 5,150 crore and an Offer-For-Sale (OFS) of shares up to Rs. 300 crores.
Bajaj Energy IPO Launch Date
Though the Bajaj Energy IPO Date is still unknown, it is expected to launch soon in 2022.
| Bajaj Energy IPO Date | NA |
| Bajaj Energy Share Price | NA |
| Lot Size | NA |
| Issue Size | NA |
| Bajaj Energy Share Price | NA |
| Face Value | 10 |
| Bajaj Energy Parent Company | Bajaj Power Ventures |
Bajaj Energy Ltd Company’s Overview
It has decades of experience in building, financing, and operating thermal power generation plants. The company has a generating capacity of 2,430 MW, and electricity demand is expected to increase, driven by the upcoming 100% electrification of growth centers and villages.
Bajaj Energy Ltd plans to add conventional power generation capacity over the next two years. The BEL power plant has been operating since 2012 and has maintained excellent results. The average plant availability ratio percentage for BEL plants was above 85% in 2016, 2017, and 2018.
Financial statements
It is an IPO for the company whose the shares have not yet entered the official market. The face value of each share is Rs 10. The Floor Price, Cap Price, and Offer Price should not be considered indicators of the stock market price after the Equity Shares are listed. No assurance can be given to active or continued trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
With the proceeds from the IPO, the company plans to purchase 6,99,36,900 equity shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindustan Sugar for Rs 4,972 crore, with the remaining amount being used for general expenses.
| Financial Year | Total Assets in Millions | Total Income in Millions | Profit After Tax in Millions |
|---|---|---|---|
| FY 2018 | Rs. 34,741.55 | Rs. 8,976.25 | Rs. 416.82 |
| FY 2017 | Rs. 36,840.97 | Rs. 14,058.76 | Rs. 882.50 |
| FY 2016 | Rs. 35,900.48 | Rs. 14,070.99 | Rs. 1,028.35 |
Company’s EBITDAto our profit for the year
| Nine months ended December 31, 2018 | Nine months ended December 31, 2017 | Fiscal 2018 | Fiscal 2017 | Fiscal 2016 | |
|---|---|---|---|---|---|
| Profit for the year/period | 175.17 | (1682.56) | (2178.70) | 3399.33 | 476.98 |
| Depreciation and amortization expenses | 7159.98 | 7079.61 | 9398.86 | 5122.18 | 772.38 |
| Finance costs | 14800.94 | 13835.40 | 18528.68 | 9845.76 | 1406.22 |
| Total tax expenses | 48.72 | 5.87 | 16.24 | 307.54 | 146.06 |
| Other income | 575.67 | 250.14 | 384.70 | 212.60 | 4.55 |
| EBITDA | 21609.14 | 18988.18 | 25380.38 | 18462.21 | 2797.09 |
| EBITDA Margin | 53.0% | 46.0% | 47.7% | 59.5% | 89.6% |
Equity Share capital of our Company
| Particulars | Aggregate value at face value |
|---|---|
| AUTHORISED SHARE CAPITAL | |
| 1,667,000,000 Equity Shares | 16,670,000,000 |
| 833,000,000 preference shares | 8,330,000,000 |
| ISSUED, SUBSCRIBED AND PAID-UP CAPITAL BEFORE THE OFFER | |
| 452,925,000 Equity Shares | 4,529,250,000 |
| PRESENT OFFER IN TERMS OF THIS DRAFT RED HERRING PROSPECTUS | |
| Offer of up to [●] Equity Shares aggregating up to ₹ 54,500 million | |
| Fresh Issue of up to [●] Equity Sharesaggregating up to ₹51,500million | |
| Offerfor Saleof up to [●] Equity Sharesaggregating up to ₹3,000million | |
| SECURITIES PREMIUM ACCOUNT | |
| Before the Offer | 3,523,890,000 |
| After the Offer* | [●] |
Plus points for investors
- It is the biggest private sector power producer in Uttar Pradesh.
- Due to 100% rural electrification, the demand for electricity in Uttar Pradesh is increasing rapidly.
- It has decades of experience with team management.
- The company has a long-term fuel supply contract with Central Coal Fields Ltd.
Negative points for investors
- It depends on Uttar Pradesh Power Corporation Ltd.
- There had been defaulted on loan payments.
- Electricity tariffs are set by the Uttar Pradesh Electricity Regulatory Commission and not by BEL.
- There is a high demand for coal which might get interrupt due to unpredictable circumstances.
- There are disputes related to UPPCL due to the payment of tariffs.
Competitive Analysis – Bajaj Energy Limited
| Company Name | Market Capitalisation | PAT Growth % |
| Tata Power Company Limited | Rs. 81,001.86 crores | 58.31% |
| NTPC Limited | Rs. 1,60,916 crores | 20.58% |
| JSW Energy Limited | Rs. 58,001.44 crores | (13.71)% |
| Torrent Power | Rs. 26,914.54 crores | 23.85% |
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FAQ
The date is not yet finalized.
Shishir Bajaj
Bajaj Power Ventures private Limited
Kushagra Bajaj
Apoorva Bajaj
Minakshi Bajaj
The Bajaj Energy IPO’s issue size is Rs 5,450 crores out of which is Rs 5,150 crores is a fresh issue and Rs 300 crores is an offer for sale.
It will be listed on NSE and BSE.
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