Bajaj Energy Limited is one of the largest private sector thermal generation companies in Uttar Pradesh. Initial Public Offering Upto [?] Equity Shares aggregating up to Rs. 54,500 million. Purchase of 69,936,900 equity shares of face value of ? 10 each of LPGCL (“LPGCL Shares”) from BPVPL and BHSL.
Bajaj Energy IPO Review & Ratings
|IPO Ratings & Review|
|Top Brokers Review||7.9/10|
From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements
BEL’s total income for the years ended March 31, 2016, 2017 and .2018, and the nine-month periods ended December 31, 2018 and December 31, 2017 was Rs. 14,070.99 million, Rs. 14,058.76 million and Rs. 8,976.25 million, and Rs. 7,220.51 million and Rs. 6,542.46 million, respectively.
LPGCL’s total income for the years ended March 31, 2016, 2017 and .2018, and the nine-month periods ended December 31, 2018 and 2017 was Rs. 3,127.44 million, Rs. 31,229.64 million and Rs. 53,573.24 million, and Rs. 41,318.42 million and Rs. 41,550.56 million, respectively.
The net asset value per Equity Share was Rs. 34.26 and Rs. 34.02 as of December 30, 2018 and March 31, 2017, respectively, as per the Restated Financial Statements
The net worth of the company as on March 31, is . Rs. 4,11,75,000 million as per the Restated Ind AS Consolidated Summary Statement of Assets and Liabilities.
Company’s profit after tax .increased by 32.4%, to Rs. 359.40 million in the nine months ended December 31, 2018 from Rs. 271.44 million in the nine months ended December 31, 2017.
The Promoters of this company are Shishir .Bajaj, Minakshi Bajaj, Kushagra Bajaj and ApoorvaBajaj. The lead manager to the issue is Edelweiss Financial Services Limited, IIFL Holdings Limited, SBI Capital Markets Limited, IDBI Capital Markets & Securities Limited and the Registrar to this issue is Link Intime India Private Limited.
Bajaj Energy IPO Date
The opening and the closing date of Bajaj Energy IPO is not known yet.
Bajaj Energy IPO Subscription
|Day / Date||QIB||NII||RII||Total Subscription|
|1st Day –|
|2nd Day –|
|3rd Day –|
|4th Day –|
|5th Day –|
|Shares Offered or Net Issue|
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Bajaj Energy IPO Price Band / Cash Price
The face value of each share is Rs 10,and the cash price of the IPO is not yet disclosed.
Bajaj Energy IPO Size & Share Offering
Initial public offering of Upto .67,34,000 Equity Shares of Face Value of Rs. 10/- each for Cash at a Price of Rs. [?] Per Equity Share (Including a Share Premium of Rs. [?] per Equity Share) aggregating to Rs. [?] Lakhs.
Bajaj Energy Limited – Company Overview
Bajaj Energy Limited was originally incorporated as .Bajaj Energy Private Limited on August 1, 1988 under the provisions of Companies Act, 1956 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Our Company was subsequently converted in to a public company and consequently name was changed to Bajaj Energy Limited.
Bajaj Energy along with LPGCL
It is one of the .largest private sector thermal generation companies in Uttar Pradesh (Source: CRISIL Research). We have a track record of developing, financing and operating thermal power plants in India.
They have a total gross installed capacity of 2,430 MW, comprising 450 MW from five operational plants of 90 MW each, owned and managed by BEL (the “BEL Power Plants”) and 1,980 MW from the power plant owned and managed by LPGCL (the “LPGCL Power Plant”),
BEL and LPGCL has .each entered into long-term fuel supply agreements with Central Coal Fields Limited, a subsidiary of Coal India Limited, for the supply of coal to the BEL Power Plants and the LPGCL Power Plant. Additionally, LPGCL has also entered into fuel supply agreements with other subsidiaries of Coal India Limited for the supply of coal.
BEL Power Plants
It have been fully .operational since 2012 and possess an operational track record of more than six years. For the years ended March 31, 2016, 2017 and 2018.
For the nine-month period ended December 31, 2018 and the years ended .March 31, 2016, 2017 and 2018, BEL on a consolidated basis generated a total income of Rs. 7,220.51 million, Rs. 14,070.99 million, Rs. 14,058.76 million and Rs. 8,976.25 million, respectively, and a profit/(loss) of Rs. 395.64 million, Rs. 1,028.35 million, Rs. 1,077.12 million and Rs. (33.95) million, respectively.
The average plant availability factor percentage (which is a measure of the .frequency at which a power plant is available to generate power) of the BEL Power Plants was approximately 85.52%, 85.48% and 87.12%, respectively.
Business strategies of Bajaj Energy Limited:
Continued expansion of portfolio
Enhance productivity and operational efficiencies
Optimizing the value of our asset portfolio through an efficient capital structure
Bajaj Energy Limited – Financial Statements
A quick look into the past financial performance of the :company to understand its performance of business and evaluate the growth prospectus:
Bajaj Energy IPO Financial Summary
On the basis of Standalone statement:-
|Amount (in INR & million)|
|Profit After Tax||47.52||(101.16)||(20.72)||1,050.89||1,026.79|
Earnings per Equity Share (in million)
|Basic & Diluted||14.66||14.98||13.42|
From the above statements, one could find that the Bajaj Energy Limited may perform well.
Bajaj Energy IPO – Promoters
The Promoters of this company are:
- Shishir Bajaj,
- Minakshi Bajaj,
- Kushagra Bajaj
- Apoorva Bajaj
List of Related Parties (Key Managerial Personnel)
- Govind Maheshwari – Chief Financial Officer
- Hitesh P Kanani – Compliance officer & CS
Interest in promotion of the Company
Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
Bajaj Energy IPO Offer Details or Issue Details
|Particulars||No. Of Equity Shares|
|Equity Shares Offered||Up to [●] Equity Shares aggregating up to Rs. 54,500 million|
|Fresh Issue||Up to [●]Equity Shares aggregating up to Rs. 51,500 million|
|Offer for Sale||Up to [●] Equity Shares aggregating up to Rs. 3,000 million by the Promoter Selling Shareholder|
|QIB Portion||Upto 3,38,000 Equity Shares of face value of Rs.10/-|
|Anchor Investor Portion||Up to [●] Equity Shares|
|Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor InvestorPortion is fully subscribed||[●] Equity Shares|
|Available for allocation to Mutual Funds only (5%of the QIB Portion (excluding the Anchor InvestorPortion)||[●] Equity Shares|
|Balance of QIB Portion for all QIBs including Mutual Fund|
|Non- Institutional Portion||Not more than [●] Equity Shares|
|Retail Portion||Not more than [●] Equity Shares|
|Equity Shares outstanding prior to the Issue||452,925,000 Equity Shares|
|Equity Shares outstanding after the Issue||[●] Equity Shares|
Bajaj Energy IPO Issue Object
These are the IPO Issue Objects of the company:
- Funding the Working Capital requirements of the Company:
- Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company
Bajaj Energy IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- one of the largest independent power producers in Uttar Pradesh with long-term, regulated PPAs with a take-or-pay feature;
- a secured fuel supply;
- successful track record of developing, financing and operating thermal power plants;
- well-positioned to capitalize on the growth and demand of Uttar Pradesh’s power industry;
- established management team with extensive operational experience.
The relevant quantitative factors are:
|Basic & Diluted EPS||RONW in %||NAV (Rs.)|
- Price to Earnings (P/E) ratio in relation to Price band of Rs. [●] to Rs. [●] per Equity Share
Competitive Peers of Bajaj Energy Limited
Below are the top competitors:
|Sr. No.||Particulars||Face Value (in Rs.)||Basic EPS (In Rs.)||Diluted EPS (In Rs.)||P/E Ratio||RONW (%)||NAV (In Rs.)|
|1||Bajaj Energy Limited||10||(0.07)||(0.07)||[●]||17.97||305|
|2||Adani Power Limited||10||(5.42)||(5.42)||(8.87)||–||2.29|
|3||Tata Power Limited||1||8.74||8.74||18.91||8.11||52.36|
|Torrent Power Limited||10||19.61||19.61||13.35||13.37||148.22|
Bajaj Energy IPO Lead Managers
|Edelweiss Financial Services LimitedIIFL Holdings LimitedSBI Capital Markets LimitedIDBI Capital Markets & Securities Limited|
Bajaj Energy IPO Registrar to offer
|Registrar to the Offer|
|Link Intime India Private LimitedC-101, 1st floor, 247 ParkLal Bahadur Shastri Marg Vikhroli (West)Mumbai 400 083Te l: +91 22 4918 6000E-mail: [email protected]: www.linkintime.co.inContact Person: Shanti Gopalkrishnan|
- Statutory Auditor – R. S. Dani & Company, Chartered Accountants and BSR & Co. LLP
- Peer Review Auditor – R. S. Dani & Company, Chartered Accountants and BSR & Co. LLP
- Bankers to the Company – Allahabad Bank, Corporation Bank, IDBI Bank, Canara Bank, Punjab National Bank
Bajaj Energy IPO Review by Stock Brokers
|Top Stock Brokers Review||Company Reputation||Competitive Edge||Financial Statement||Popularity Index||Promoters Reputation|
Bajaj Energy IPO Grey Market Premium
The …Bajaj Energy IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.