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Bajaj Energy Limited (BEL) is set to debut its IPO in 2025. The IPO offers fresh issues of equity shares aggregating up to ₹ 51,50 cr and offers for sale up to ₹ 3,00 cr. The IPO is expected to be listed on NSE and BSE and the listing dates have not been confirmed as of now.

Company Overview

The Bajaj Energy Limited (BEL) was incorporated in 2008 with the sole objective to promote; develop, design, engineer, construct, operate and maintain “electricity System”. It soon grew to be one of the largest private sector thermal generation companies in Uttar Pradesh with five operational power plants producing a total capacity of 2,430 MW.  The company through this IPO aims to fully acquire Lalitpur Power Generation Co Ltd  LPGCL (which produces 1980MW) by buying 69,936,900 shares from BPVPL and BHSL.

Table of Contents
Objectives of the Bajaj Energy Limited IPO
Financial Performance of Bajaj Energy Limited
Industry Outlook
Strengths and Risks of the Bajaj Energy Limited. IPO
IPO Subscription Details: Bajaj Energy Limited
Expert Recommendations
bajaj energy limited ipo
  • Issue Size and type :The IPO offers fresh issue of equity shares aggregating up to ₹ 51,50 cr and offer for sale up to ₹ 3,00 cr
  • Price Range: The price range has not been finalized
  • Lot Size: The Lot size of the IPO has not been finalized yet.
  • Application: The application for this IPO has not been opened yet.
  • Listing Date: The Listing date has not been finalized.
  • Stock Exchange: The IPO is expected to be listed at NSE and BSE.

Objectives of the Bajaj Energy Limited IPO

  • The company is offering a fresh issue and an offer for sale by the promoters and shareholders.
  • Through this IPO, the company aims to purchase 69,936,900 of equity shares of Lalitpur Power Generation Co Ltd (LPGCL) from BPVPL and BHSL and the remaining  amounts will  be utilized to meet corporate purposes and expenses.


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    Financial Performance of Bajaj Energy Limited

    The table below summarises the financial performance of Bajaj Energy Limited

    Amount is  in ₹ Lakhs

    Particulars  

    Nine months ended December 31, 2018

    2018

    2017

    2016

    Equity Share capital

    411.75

    411.75

    411.75

    411.75

    Net worth

    12,935.20

    12,543.46

    12,579.30

    11,503.64

    Revenue (total income)

    7,220.51

    8,976.25

    14,058.76

    14,070.99

    Profit after tax

    359.40

    416.82

    882.50

    1,028.35

    Industry Outlook

    The total electricity consumption in Uttar Pradesh has grown from 55550 GWh in 2012-13 to 115675 GWh 2022-23 and is expected to grow more. The state also saw peak demand of energy in 2024 and has projected to increase with a CAGR of 7.0 % and 6.5% respectively from 2023-24 to 2029-30 therefore the power generation capacity and demand is expected to grow accordingly. Based on all these forecasts and growing demands, the prospects of the company look very sound.

    Strengths and Risks of the Bajaj Energy Limited. IPO

    Strengths:

  • The company is the largest private sector thermal generation company in Uttar Pradesh with five operational power plants making it the largest private power suppliers in the state.
  • Uttar Pradesh is one of the top 10 power consumption states in the country as of 2024.
  • The company, through this IPO aims to fully acquire Lalitpur Power Generation Co Ltd (LPGCL) that generates at the capacity of 1980 MW and is rated as the most reliable power station in UP.

    • Weakness

    There are always pros and cons attached to everything and Bajaj Energy Limited is also not left blank with it. Following are some of the weakness or challenges it is facing, have faced or will face.

  • The company aims to take full control over LPGCL but the company primarily relies on one customer i.e. Uttar Pradesh Power Corporation Ltd (UPPCL). The company is on a power purchase agreement with  (PPA) with UPPCL and any failure or inability by UPPCL to meet the financial commitments could result to effect the business, financial condition and results of operations.
  • There are certain pending legal disputes which the company is involved in with UPPCL regarding payment dispensaries. 
  • The company has a coal based thermal power plants that requires tons of supplies of coal. The company is primarily dependent on Coal India ltd for its large quantity and quality coal supplies and in the event of shortage of coal in terms of quantity and quality or failure to make alternative arrangements, could adversely affect the supply of electricity which would eventually lead to financial constraint and misaligned business operations.
  • The company has encountered various losses in the past on failure to complete project due to delay in constructions or operations etc which incurred additional costs. The company may face similar situation in with the upcoming projects, this may effect the company's overall operations as well.


    • IPO Subscription Details: Bajaj Energy Limited

    The IPO offers fresh issue of equity shares aggregating up to ₹ 51,50 cr and offer for sale up to ₹ 3,00 cr by the Promoter Selling Shareholder. The IPO listing dates is yet to be announce

    Expert Recommendations

    ‘Bajaj’ is a well recognized and respected company in India who has been in this business fordecades. This IPO has a high risk factor because it is primarily dependent with the operations of LPGCL located in Uttar Pradesh, India. Undoubtedly, UP is one of the largest electricity consumption states in India but the market volatility, coal supplies, state agendas etc must be looked into. Prospective Investors should carefully analyze the risk factors given in the Daft Red Herring Prospectus before investing. And study well all the financial terms, performances, future growth opportunities, challenges etc.

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    Key Takeaways:

    The company with the help of this IPO is looking to take complete control over Lalitpur Power Generation Company Limited (LPGCL) and further utilizing the capital to improve its operations aiming to establish a firm hold in the power sector in UP which is projected to grow.  The IPO involves high risks and prospective investors should analyze the risk involved before investing and stay updated through the SEBI website regarding its listing dates, price ranges or any other relevant information.

    FAQ; Frequently Asked Questions?

    1.When is the listing date of Bajaj Energy IPO?

    The listing date of the Bajaj Energy IPO has not yet been finalized.

    2. Is the IPO Bajaj Energy Limited fairly Priced?

    The Prices of the IPO has not been confirmed yet.

    3. How much Grey Market Premium(GMP) did Bajaj Energy IPO opened at?

    The Grey market premium (GMP) for the IPO has not yet began.

    4. Where else we can get more information about the Bajaj Energy IPO?

    For more information about Bajaj Energy Limited IPO; Visit to 

    1. https://www.ibef.org/industry/power-sector-india

    2. https://www.bajajenergy.com/

    3. https://www.sebi.gov.in/filings/public-issues/apr-2019/bajaj-energy-limited_42638.html