Bajaj Energy (BEL) has filed draft red herring prospectus with the capital market regulator SEBI, for an initial public offering.
The company plans to raise Rs 5,450 crore through a public issue comprising a fresh issue of up to Rs 5,150 crore and offer for sale of Rs 300 crore by promoter Bajaj Power Ventures.
Currently, Bajaj Power Ventures Pvt Ltd. (BPVPL) owns 100 percent stake in Bajaj Energy.
BEL has 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 and 1,980 MW from the power plant owned and managed by a special purpose vehicle (SPV) Lalitpur Power Generation Company (LPGCL).
BEL intends to acquire LPGCL’s 1,980 MW power plant from the issue proceeds.
“Net proceeds from the fresh issue are proposed to be utilised for purchasing of 69,936,900 equity shares of LPGCL from BPVPL and BHSL (Rs 4,972 crore) and for general corporate purposes,” the company said in its DRHP filed with SEBI on April 4, 2019. BHSL is Bajaj Hindusthan Sugar.
The aggregate installed capacity of 2,430 MW is fully contracted under the long-term power purchase agreements entered into with certain state government-owned procurers through UPPCL.
BEL and LPGCL have each entered into long-term fuel supply agreements with Central Coal Fields, a subsidiary of Coal India, 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 for the supply of coal.
BEL’s corporate promoter is Bajaj Power Ventures (BPVPL) and individual promoters are Shishir Bajaj, Minakshi Bajaj, Kushagra Bajaj and Apoorva Bajaj.
Listed entities, which are part of the promoter group, are Bajaj Consumer Care, and Bajaj Hindusthan Sugar.
Edelweiss Financial Services, IIFL Holdings, SBI Capital Markets and IDBI Capital Markets & Securities are book running lead managers to the issue. Equity shares will be listed on BSE and NSE.