Bajaj Energy IPO Review

Bajaj Energy IPO Review, Dates, Allotment, Size – Complete Details

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
Industry Sentiments7.9/10
Industry Ranking8.2/10
Company Background7.3/10
Company Reputation7.2/10
Competitive Edge8.2/10
Financial Statements7.8/10
Popularity Index7.9/10
Promoters Reputation8.2/10
Retail Appetite7.8/10
Top Brokers Review7.9/10
Overall Ratings7.7/10
Star Ratings★★★★☆

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 / DateQIBNIIRIITotal 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)
Total Assets6,201.7735,399.4734,741.5536,840.9735,900.48
Total Revenue7,220.516,542.468,976.2514,058.7614,070.99
Total Expense6,765.646,242.948,493.1713,247.8612,568.24
Profit After Tax47.52(101.16)(20.72)1,050.891,026.79

Earnings per Equity Share (in million)

Basic & Diluted14.6614.9813.42

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.

Property Interest

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
 Of which:
Fresh IssueUp to [●]Equity Shares aggregating up to Rs. 51,500 million
Offer for SaleUp to [●] Equity Shares aggregating up to Rs. 3,000 million by the Promoter Selling Shareholder
 QIB PortionUpto 3,38,000 Equity Shares of face value of Rs.10/- 
 Of which
Anchor Investor PortionUp to [●] Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor InvestorPortion is fully subscribed [●] Equity Shares
 Of which
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 PortionNot more than [●] Equity Shares
Retail PortionNot more than [●] Equity Shares
 Equity Shares outstanding prior to the Issue452,925,000 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 EPSRONW in %NAV (Rs.)
  • Price to Earnings (P/E) ratio in relation to Price band of Rs. [●] to Rs. [●] per Equity Share
ParticularsP/E ratio

Competitive Peers of Bajaj Energy Limited

Below are the top competitors:

Sr. No. ParticularsFace Value  (in Rs.)Basic EPS (In Rs.)Diluted EPS (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
1Bajaj Energy Limited10(0.07)(0.07)[●]17.97305
2Adani Power Limited10(5.42)(5.42)(8.87)2.29
3Tata Power Limited18.748.7418.918.1152.36
5JSW Limited100.480.48152.50.7866.40
Torrent Power Limited1019.6119.6113.3513.37148.22

Bajaj Energy IPO Lead Managers

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]: Person: Shanti Gopalkrishnan

Other Details:

  • 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 ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

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.

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