Price Band: —
Min. Investment: Not disclosed (DRHP stage)
Issue Size: ₹5,450 Cr
About the Company
What does this company do?
Bajaj Energy Limited is a power generation company based in Uttar Pradesh, India, with its registered office at Lakhimpur Kheri. The company operates through its associate Lalitpur Power Generation Company Limited (LPGCL), a thermal power plant. The IPO proceeds are primarily intended to fund the acquisition of LPGCL,…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
₹5,450 Cr
Fresh Issue
₹5,150 Cr
Proceeds go to company
OFS
₹300 Cr (OFS proceeds will go directly to Bajaj Power Ventures Private Limited as the Promoter Selling Shareholder and will NOT be received by the company)
Proceeds to selling shareholders
Products & Brands
Key offerings and brand portfolio of the company.
Thermal Power Generation (via LPGCL): Bajaj Energy Limited, through its associate Lalitpur Power Generation Company Limited (LPGCL), is engaged in thermal power generation. LPGCL operates a coal-based thermal power plant in Lalitpur, Uttar Pradesh.
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | 9M FY2019 (Apr–Dec 2018) | FY2018 | FY2017 | FY2016 |
|---|
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS (₹)
—
Not disclosed in DRHP cover/summary sections provided
P/E Ratio
—
Price band not yet determined at DRHP stage
RoNW (%)
—
Not disclosed in sections provided
NAV per Share (₹)
—
Not disclosed in sections provided
Debt/Equity
—
Not disclosed in sections provided
EBITDA Margin (%)
—
Not disclosed in sections provided
PAT Margin (%)
—
Not disclosed in sections provided
Revenue Growth YoY
—
Not disclosed in sections provided
Objectives of the Issue
How the company intends to use the IPO proceeds.
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OFS Note: ₹300 Cr of OFS proceeds will go directly to Bajaj Power Ventures Private Limited (Promoter Selling Shareholder) and will NOT be received by the company.
1
Fresh Issue proceeds of up to ₹5,150 Cr are intended primarily to fund the acquisition of LPGCL (Lalitpur Power Generation Company Limited), converting it from an associate to a wholly-owned subsidiary of Bajaj Energy Limited.
2
General corporate purposes as may be decided by the Board in consultation with the Lead Managers.
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Part of the reputed Bajaj Group with strong brand and management pedigree
Exposure to large thermal power generation capacity through LPGCL in power-deficit Uttar Pradesh
Experienced and well-known individual and corporate promoters with relevant industry expertise
⚠️Weaknesses
Currently operates as a holding/investment company with LPGCL as an associate, limiting direct operational control
High dependence on a single asset (LPGCL) for all power generation operations
No prior listed market history, creating uncertainty around fair value and investor confidence
🚀Opportunities
India's growing electricity demand and the government's push for 24x7 power supply create significant headroom for power generators
Consolidation of LPGCL as a wholly-owned subsidiary post-IPO can unlock operational and financial synergies
Uttar Pradesh is one of India's largest and most power-deficit states, offering long-term demand visibility
🔥Threats
DISCOM financial stress and payment delays remain a structural risk for power generators in India
Increasing competition from renewable energy sources may pressure long-term thermal power tariffs
Regulatory changes in coal allocation, environmental norms, or tariff determination could adversely impact operations
Competitive Strengths
Key advantages highlighted in the DRHP.
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Backed by the established Bajaj Group with strong brand recognition and corporate governance
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Strategic location of power plant in Uttar Pradesh, a large power-deficit state with significant demand
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Associate LPGCL operates a large-scale thermal power plant providing stable generation capacity
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Experienced promoter group with deep expertise in the energy and industrial sectors
✓
Proposed acquisition of LPGCL will consolidate power generation assets under a single entity
✓
Access to capital markets through this IPO to fund strategic growth and deleveraging
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
PrePost
Key Risks
Material risk factors to consider before applying.
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The company is heavily dependent on LPGCL (its associate), and any adverse developments in LPGCL's operations could materially impact Bajaj Energy Limited
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Significant capital requirements and high leverage in the power sector may strain financial position post-acquisition
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Regulatory and policy risks in the Indian power sector including changes in tariff regulations and government policies
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Fuel supply risks — thermal power plants are dependent on coal availability and pricing, which are subject to uncertainty
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The power sector in India faces issues of payment delays and defaults by state distribution companies (DISCOMs)
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This is the first public issue of the company and there is no prior market history for its equity shares, making price discovery uncertain
◆ Neutral
Should You Apply?
Bajaj Energy Limited is a Bajaj Group power sector entity seeking to raise ₹5,450 Cr through its IPO, with the bulk (₹5,150 Cr) as fresh issue proceeds primarily earmarked to acquire its associate LPGCL and convert it into a wholly-owned subsidiary. The company has significant exposure to the power-deficit state of Uttar Pradesh through LPGCL's thermal power plant, which offers long-term demand visibility. However, as this is a DRHP, the price band, lot size, financial details, and peer comparison data were not disclosed in the available sections of the document, making a definitive valuation assessment difficult. Key risks include the structural challenges of the Indian thermal power sector, DISCOM payment delays, fuel supply uncertainties, and the company's current status as essentially a holding entity dependent on a single asset. Investors should await the final RHP with complete financial disclosures, price band, and peer benchmarks before making an investment decision.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (4)
Edelweiss
IIFL Capital
SBI Capital Markets
IDBI Capital
Registrar to the Issue
📋
Link Intime India Private Limited
Registrar to the Issue