Bajaj Energy IPO
IPO Price Range: Not Announced Yet
IPO Status
Upcoming
Listing Exchange
BSE
Objectives of IPO
- Partial Stake Divestment: The Bajaj Energy IPO enables the promoter, Bajaj Power Ventures, to divest its stakes, providing it liquidity and an exit option.
- Stake Acquisition in LPGCL: To acquire the remaining 79.31% stake in Lalitpur Power Generation Company Limited (LPGCL), strengthening Bajaj Energy’s position as a leading thermal power producer in Uttar Pradesh.
Financial Performance of Bajaj Energy
Strengths and Risks
Strengths
Strong PPA Agreements: Long-term PPAs ensure stable income with a two-part tariff structure and efficient receivables management, covering 100% of installed capacity.
Secured Fuel Supply: Long-term FSAs with Coal India ensure fuel stability, with cost pass-through mechanisms for imported or auctioned coal.
Proven Power Generation Expertise: Operates 450 MW and 1,980 MW plants with high availability, timely project execution, and efficient debt funding.
Strategic Market Position: Strongly positioned in Uttar Pradesh’s growing power market, driven by rising demand, electrification, and industrial growth.
Experienced Management Team: Management with 21+ years of experience, supported by a skilled 750-member technical team for efficient operations.
Risks
Dependence on Single Customer (UPPCL): BEL and LPGCL rely solely on UPPCL for income; payment delays or loss of UPPCL could severely impact their finances, with BEL’s 2018 income at ₹7,22 crore and LPGCL’s at ₹41,31.8 crore.
Disputes with UPPCL over Tariffs: LPGCL faces disputes with UPPCL over unpaid tariffs, risking a ₹7,53.8 crore write-off for coal shortages and ₹4,70.8 crore for equity returns, pending UPERC and APTEL rulings.
Audit Qualifications and Financial Risks: LPGCL’s 2018 audit flagged ₹24,96 crore in disputed income; adverse rulings could cut profits and equity by ₹5,16.4 crore, affecting BEL’s consolidated financials.
Contractual Risks with PPAs: UPPCL unilaterally terminated BEL’s PPAs in 2018, causing a 169-day shutdown and ₹54 crore loss; future cancellations could further harm BEL’s operations and revenue.
Loan Covenant Breaches: BEL and LPGCL breached loan terms, with debts of ₹1,901.35 crore and ₹1,55,65.15 crore as of 2018; defaults risk loan acceleration and credit rating drops to “D.”
How to Apply for Bajaj Energy IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Bajaj Energy IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Bajaj Energy
Adani Power Limited
Adani Power operates a vertically integrated business model focused on power generation, transmission, and distribution, leveraging coal, solar, and thermal energy sources.
Tata Power Limited
Tata Power diversified power utility with renewable and conventional energy generation, transmission, distribution, and power trading services, emphasizing sustainability and green energy.
NTPC Limited
NTPC is India’s largest power producer, generating electricity from coal, gas, hydro, and renewables, with a focus on efficient, reliable, and sustainable power supply.
Unlisted Competitors of Bajaj Energy
Sravanthi Energy Pvt. Ltd.
Sravanthi Energy specializes in natural gas-based power generation, offering efficient, environmentally friendly electricity solutions to industrial and commercial customers.
Jindal India Thermal Power Limited (JITPL)
JITPL operates coal-based thermal power plants, focusing on cost-effective and reliable electricity generation for industrial and grid supply.
Essar Power Limited
Essar Power engages in power generation using coal, gas, and renewables, providing reliable and efficient energy solutions across industrial and commercial sectors.
Bajaj Energy Shareholding Pattern
| Promoters | 92.8% | |
| Name | Role | Stakeholding |
| Bajaj Power Ventures | Promoter | 100% |
About Bajaj Energy
The entire capacity is fully contracted under long-term Power Purchase Agreements (PPAs) with Uttar Pradesh Power Corporation Limited (UPPCL). The power business is set to be consolidated under Bajaj Energy after the IPO.
Bajaj Energy IPO filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in April 2019, aiming to raise ₹5,450 crore. This comprised a fresh issue of ₹5,150 crore and an offer for sale of ₹300 crore by Bajaj Power Ventures. The company received SEBI approval for the Bajaj Energy IPO in September 2019.
Products & Services
| Product | Thermal Power Plants |
| Known For | Electricity generation |
| Top Products | BEL Power Plants, LPGCL Power Plant |