The IPO will comprise fresh shares of up to Rs 5,150 crore by the Kushagra Bajaj-controlled company.
Mumbai: Bajaj Energy, a thermal power generation company based in Uttar Pradesh, has filed its draft red herring prospectus (DRHP) with the capital market regulator Sebi on Friday to raise about Rs 5,450 crore.
This would be the second biggest initial public offer (IPO) since November 2017 when HDFC Life Insurance raised Rs 8,695 crore.
The IPO will comprise fresh shares of up to Rs 5,150 crore by the Kushagra Bajaj-controlled company. Bajaj Power Ventures will also sell shares worth Rs 300 crore.
So far in 2019, seven companies including Embassy REIT have raised Rs 7,860 crore from the primary market.
The Rs 4,750-crore Embassy REIT issue was subscribed 1.7 times while the Rs 1,200 crore Metropolis IPO, which ended on Friday, was subscribed 5.7 times.
The net proceeds from the fresh share issue could be utilised to purchase 6.99 crore shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindusthan Sugar.
Bajaj Energy 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 Lalitpur Power.
For the nine months ended December 31, 2018, the company has reported a total revenue of Rs 722 crore, up 10% over the previous year. The company’s net profit grew at 32.42% to Rs 35.94 crore during this period. For the year ended March 31, 2018, the company reported a turnover of Rs 898 crore with a loss of Rs 34 crore.
Edelweiss, IIFL Holdings and SBI Capital Markets are the lead managers to the issue. IDBI Capital is the co-book running lead managers to the issue Both Bajaj Energy and Lalitpur Power Generation Company have also entered into long-term fuel supply agreements with Coal India for the supply of coal to their power plants.
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