Bajaj Energy gets Sebi's go ahead for Rs 5,450-cr IPO

Bajaj Energy has received capital markets regulator Sebi's go ahead to raise an estimated Rs 5,450 crore through an initial share-sale offer. The company, which filed its IPO papers with Sebi in April, obtained the regulator's "observations" on August 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 (IPO) 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 6,99,36,900 equity 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 per cent stake in Bajaj Energy, which is into developing, financing and operating thermal power plants with a gross installed capacity of 2,430 MW.

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.