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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.
Bajaj Energy Limited: Major Milestones
- 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.
- 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)
- 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.
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Bajaj Energy Limited: Key Strengths to Know
- One of the largest independent power producers in Uttar Pradesh.
- A secured fuel supply from Central Coal Fields Limited, a subsidiary of Coal India Limited.
- 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.
- Established management team with extensive operational experience.
Key Risks of Bajaj Energy Limited
- BEL and LPGCL both rely on a single customer – UPPCL.
- LPGCL is currently involved in disputes with UPPCL relating to payment of tariffs.
- Acquisition of the remaining approximate 79.31% interest of LPGCL is subject to risks.
- 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).
- 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. | Name | Designation |
|---|---|---|
| 1 | Kushagra Bajaj | Chairman and Non-Executive Director |
| 2 | Tara Sankar Bhattacharya | Independent Director |
| 3 | Santosh Balachandran Nayar | Independent Director |
| 4 | Dhananjay Nilkanth Date | Independent Director |
| 5 | Naina Krishna Murthy | Independent Director |
| 6 | Shalu Laxmanraj Bhandari | Independent Director |
| 7 | Prabal Banerjee | Non-Executive Director |
| 8 | Dr. Ajay Vikram Singh | Non-Executive Director |
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.)
| Particulars | Reference | As on 31.03.2018 | As on 31.03.2017 | As on 31.03.2016 |
|---|---|---|---|---|
| Assets | ||||
| Total non-current asset | 1a | 2775.73 | 2971.11 | 2,776.99 |
| Total current assets | 1b | 698.43 | 712.98 | 813.05 |
| Total Assets | 1c=1a+1b | 3,474.16 | 3,684.09 | 3,590.04 |
| Equity | ||||
| Equity share capital | 2a | 41.17 | 41.17 | 41.17 |
| Other equity | 2b | 1265.08 | 1267.15 | 1109.19 |
| Total Equity | 2c=2a+2b | 1306.25 | 1308.33 | 1150.36 |
| Liabilities | ||||
| Total non-current liabilities | 3a | 1,472.32 | 1,665.04 | 1,681.14 |
| Total current liabilities | 3b | 695.58 | 710.73 | 758.54 |
| Total Liabilities | 3c=3a+3b | 2,167.90 | 2,375.77 | 2,439.68 |
| Total Equity and Liabilities | 4a=2c+3c | 3474.15 | 3684.09 | 3590.04 |
Bajaj Energy Ltd: Summary of Profit and Loss (in Rs. Cr.)
| Particulars | Reference | As on 31.03.2018 | As on 31.03.2017 | As on 31.03.2016 |
|---|---|---|---|---|
| Income | ||||
| Revenue from operations | 1a | 855.20 | 1,370.94 | 1,331.13 |
| Other Income | 1b | 42.43 | 34.93 | 75.97 |
| Total Income(top-line) | 1c=1a+1b | 897.63 | 1,405.88 | 1,407.10 |
| Expenses | ||||
| Total Expenses | 2a | 849.32 | 1,324.79 | 1,256.82 |
| Profit/ Loss | ||||
| Profit before tax | 3a | 48.31 | 81.09 | 150.28 |
| Tax | 3b | 6.63 | -7.16 | 47.44 |
| Profit After Tax | 3c=3a-3b | 41.68 | 88.25 | 102.84 |
| Share of profit/ (loss) of associate (net) | 3d | -45.08 | 19.46 | 0.00 |
| Profit / (loss) for the period / year (bottom line) | 3e=3c+3d | -3.40 | 107.71 | 102.84 |
| Earnings Per Share | ||||
| Basic in Rs.(Face value of Rs.10 each) | 3a | -0.82 | 26.16 | 24.98 |
| Diluted in Rs.(Face value of Rs.10 each) | 3b | -0.82 | 26.16 | 24.98 |
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Bajaj Energy Ltd: Summary of Cash Flows (in Rs. Cr.)
| Particulars | Reference | As on 31.03.2018 | As on 31.03.2017 | As on 31.03.2016 |
|---|---|---|---|---|
| Cash Flows | ||||
| Net cash generated from operating activities | 1a | 304.89 | 654.00 | 601.69 |
| Net cash used in investing activities | 1b | 94.95 | -260.55 | 59.72 |
| Net cash used in financing activities | 1c | -402.78 | -385.44 | -667.68 |
| Net Increase/(Decrease) in Cash and Cash Equivalents | 1d=1a+1b+1c | -2.95 | 8.01 | -6.27 |
| Cash and Cash Equivalents at the beginning of the period/year | 1e | 11.14 | 3.12 | 9.39 |
| Cash and Cash Equivalents at the end of the period/year | 1f=1d+1e | 8.19 | 11.14 | 3.12 |
Bajaj Energy Ltd IPO Objective
- 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.
- 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.
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