Bajaj Energy Gets SEBI Nod For Rs 5,450-Crore IPO

Bajaj Energy has received the Securities and Exchange Board of India’s nod to raise an estimated Rs 5,450 crore through an initial share-sale offer.

The company, which filed its IPO papers with the market regulator in April, obtained the regulator’s observations on Aug. 30, latest update available with the capital markets watchdog showed.

SEBI’s observation is necessary for any company planning to launch public issues.

According to draft papers, Bajaj Energy’s initial public offer comprises fresh issuance of shares aggregating up to Rs 5,150 crore and an offer for sale of scrips up to Rs 300 crore by Bajaj Power Ventures.

The company plans to utilise the proceeds from the IPO to purchase 6.99 crore shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindustan Sugar for Rs 4,972 crore, and the remaining amount will be utilised for general expenses.

Bajaj Power owns 100 percent stake in Bajaj Energy, which is into developing, financing and operating thermal power plants with a gross installed capacity of 2,430 megawatt.

The 2,430-MW capacity comprises 450 MW from five operational plants of 90 MW each, owned and managed by Bajaj Energy, and 1,980 MW from the power plant owned and managed by a special purpose vehicle of Lalitpur Power.

Bajaj Energy intends to acquire Lalitpur Power’s 1,980 MW from the proceeds of the offer, it said.

Edelweiss Financial Services, IIFL Holdings and SBI Caps are the lead managers to the issue, while IDBI Capital Markets is the co-book running lead managers to the issue.