(Last Updated On: December 23, 2019)

Are you interested in learning about the latest IPOs? Let’s take a sneak peek into the Bajaj Energy Limited IPO: A Complete Review.

Bajaj Energy Limited: Company Overview

Bajaj Energy Limited (BEL) is one of the largest private sector thermal generation companies in Uttar Pradesh with a track record of developing, financing and operating thermal power plants in India.

Bajaj Energy Limited (BEL) and Lalitpur Power Generation Company Limited (LPGCL) are primarily engaged in the business of power generation under long term power purchase agreements. BEL has shareholding of approximately 20.69% in LPGCL and intends to acquire the remaining approximately 79.31% interest from the remaining shareholders of LPGCL, namely, Bajaj Power Ventures Private Limited (BPVPL) as to approximately 61.80% and Bajaj Hindusthan Limited (BHSL) as to approximately 17.51%.

BEL has 5 thermal power projects of 90 MW each located at Khambarkhera, Maqsoodapur, Barkhera, Utraula and Kundarkhi, all in the state of Uttar Pradesh having aggregate capacity of 450 MW. The associate LPGCL has setup super critical thermal power plant with the capacity of 1980 MW (660MW x 3 units) located at Village Badagaon (Chiglaua) & Mirchwara,Tehsil Mehrauni, (District Lalitpur), Uttar Pradesh.  Entire generation of all the power plants of BEL and LPGCL is sold to Uttar Pradesh Power Corporation Limited (UPPCL) under long term power purchase agreements.

The company has 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 and 1,980 MW from the power plant owned and managed by LPGCL.

The BEL Power Plants have been fully operational since 2012 and possess an operational track record of more than six years. The LPGCL Power Plant has been fully operational since December 2016.

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Bajaj Energy Limited: Major Milestones

  1. 2010 – Five thermal power projects with a capacity of 90 MW each were assigned to BEL from BHSL(erstwhile Bajaj Hindusthan Limited) and the company entered into PPAs with UPCCL for each of the five power plants for a period of 25 years from the commercial operation date of the power plants.
  2. 2011 – Execution of supplementary power purchase agreements with DISCOMs for the supply of 100% of saleable energy and commencement of commercial operations at Khambarkhera (Unit 2), Maqsoodapur (Unit 1) and Barkhera (Unit 1)
  3. 2012 – Commencement of commercial operations at Khambarkhera (Unit 1), Maqsoodapur (Unit 2), Barkhera (Unit 2), Utraula (Unit 1 and Unit 2) and Kundarkhi (Unit 1 and Unit 2) And execution of Fuel Supply Agreements between BEL and Central Coal Fields Limited.

Bajaj Energy Limited: Key Strengths to Know

  1. One of the largest independent power producers in Uttar Pradesh.
  2. A secured fuel supply from Central Coal Fields Limited, a subsidiary of Coal India Limited.
  3. Successful track record of developing, financing and operating thermal power plants.
  4. Well-positioned to capitalize on the growth and demand of Uttar Pradesh’s power.
  5. Established management team with extensive operational experience.

Key Risks of Bajaj Energy Limited

  1. BEL and LPGCL both rely on a single customer – UPPCL.
  2. LPGCL is currently involved in disputes with UPPCL relating to payment of tariffs.
  3. Acquisition of the remaining approximate 79.31% interest of LPGCL is subject to risks.
  4. LPGCL has experienced negative cash flows from operating activities in certain prior periods. Any negative cash flows in the future could adversely affect the financial condition and the trading price of the equity shares of Bajaj Energy Limited (BEL).
  5. Any failure to extend or renew the PPAs will have a material and adverse effect on the business, financial condition, cash flows and results of operations.
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Bajaj Energy Ltd Team

Promoters

Bajaj Energy Limited has 1 corporate promoter and 4 individual promoters. The Corporate Promoter is Bajaj Power Ventures Private Limited and Individual Promoters are – Shishir Bajaj, Minakshi Bajaj, Kushagra Bajaj and Apoorva Bajaj.

Directors

As on date,  BEL board of directors comprises eight Directors, including three non-executive Directors and five Independent Directors, two of whom are women Directors.

S.No.NameDesignation
1
Kushagra BajajChairman and Non-Executive Director
2Tara Sankar BhattacharyaIndependent Director
3Santosh Balachandran NayarIndependent Director
4Dhananjay Nilkanth DateIndependent Director
5Naina Krishna MurthyIndependent Director
6Shalu Laxmanraj BhandariIndependent Director
7Prabal BanerjeeNon-Executive Director
8Dr. Ajay Vikram SinghNon-Executive Director

Bajaj Energy Ltd. IPO Review, dates, price, allotment

Now, let’s gather some Bajaj Energy Ltd Financials that shall give you a clear idea of investing or not in the Bajaj Energy IPO.

Bajaj Energy Ltd: Summary of Assets and Liabilities (in Rs. Cr.)

ParticularsReferenceAs on 31.03.2018 As on 31.03.2017As on 31.03.2016
Assets
Total non-current asset1a2775.732971.112,776.99
Total current assets1b698.43712.98813.05
Total Assets1c=1a+1b3,474.163,684.093,590.04
Equity
Equity share capital2a41.1741.1741.17
Other equity2b1265.081267.151109.19
Total Equity2c=2a+2b1306.251308.331150.36
Liabilities
Total non-current liabilities3a1,472.321,665.041,681.14
Total current liabilities3b695.58710.73758.54
Total Liabilities3c=3a+3b2,167.902,375.77
2,439.68
Total Equity and Liabilities4a=2c+3c3474.153684.093590.04

Bajaj Energy Ltd: Summary of Profit and Loss (in Rs. Cr.)

ParticularsReferenceAs on 31.03.2018 As on 31.03.2017As on 31.03.2016
Income
Revenue from operations1a855.201,370.941,331.13
Other Income1b42.4334.9375.97
Total Income(top-line)1c=1a+1b897.631,405.881,407.10
Expenses
Total Expenses2a849.321,324.791,256.82
Profit/ Loss
Profit before tax3a48.3181.09150.28
Tax3b6.63-7.1647.44
Profit After Tax3c=3a-3b41.6888.25102.84
Share of profit/ (loss) of associate (net)3d-45.0819.460.00
Profit / (loss) for the period / year (bottom line)3e=3c+3d
-3.40107.71102.84
Earnings Per Share
Basic in Rs.(Face value of Rs.10 each)3a-0.8226.1624.98
Diluted in Rs.(Face value of Rs.10 each)3b-0.8226.1624.98
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Bajaj Energy Ltd: Summary of Cash Flows (in Rs. Cr.)

ParticularsReferenceAs on 31.03.2018 As on 31.03.2017As on 31.03.2016
Cash Flows
Net cash generated from operating activities1a304.89654.00601.69
Net cash used in investing activities1b94.95-260.5559.72
Net cash used in financing activities1c-402.78-385.44-667.68
Net Increase/(Decrease) in Cash and Cash Equivalents 1d=1a+1b+1c-2.958.01-6.27
Cash and Cash Equivalents at the beginning of the period/year1e11.143.129.39
Cash and Cash Equivalents at the end of the period/year1f=1d+1e8.1911.143.12

Bajaj Energy Ltd IPO Objective

  1. Purchase of 69,936,900 LPGCL shares from BPVPL and from BHSL, following which LPGCL will become the wholly owned subsidiary of Bajaj Energy Limited.
  2. General corporate purposes.

Bajaj Energy IPO Offer Size

Issue of up to [●] Equity Shares for cash at price of Rs. [●] per Equity Share (including a premium of Rs.[●] per Equity Share) aggregating up to Rs.5450 Cr.

Bajaj Energy Ltd. IPO Dates & Price Band : Coming Soon

Bajaj Energy Ltd. IPO Market Lot : Coming Soon

Bajaj Energy Ltd IPO Allotment & Listing : Coming Soon