Bajaj Energy Ltd IPO Details

Bajaj Energy Ltd IPO

Bajaj Energy Ltd IPO Details

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Bajaj Energy Ltd IPO Details Summary


Bajaj Energy Ltd IPO (BEL) and Lalitpur Power Generation Company Ltd. (LPGCL) are among the largest private-sector thermal generation companies in Uttar Pradesh. The company develops, finances and operates thermal power plants in India. BEL has 450 megawatt coal-based thermal Power plants across 5 locations in Uttar Pradesh. Bajaj Energy’s total gross installed capacity is 2,430 MW. This comprises 450 mega-watts from 5 plants, owned and managed by BEL (the “BEL Power Plants”), and 1,980 MW from the power plant owned and operated by LPGCL (the “LPGCL Power Plant”). BEL intends to acquire LPGCL completely in future using the proceeds it receives from the IPO offer.


  • One of the largest independent power producers in Uttar Pradesh.
  • Principal fuel supplier is Central Coal Fields Ltd., a subsidiary of Coal India Ltd.
  • Well-positioned in Uttar Pradesh to capitalise on the state’s demand.
  • All assets are based in Uttar Pradesh. Uttar Pradesh is one of the largest and most densely populated states in India.
  • Operational power plants have a gross capacity of 2,430 MW. This according to the draft red herring prospectus published in 2019.


  • Most of the income is derived from electricity sales to one customer: Uttar Pradesh Power Corporation Ltd. (UPPCL).
  • As per DRHP, LPGCL is involved in disputes with UPPCL for tariff payment.
  • Has not been compliant with certain loan agreements in the past resulting in default
  • Faces fuel supply risks despite having entered into long-term agreements. BEL primarily relies on coal sourced from subsidiaries of Coal India.
  • Operations carry risk of environmental damage.
  • Unavailability of appropriate infrastructure could impact the delivery of coal. Heavy dependence on railway infrastructure and road infra for coal.
  • Tariffs subject to regulatory scrutiny by the Uttar Pradesh Electricity Regulatory Commission (UPERC)
  • As per DRHP, the final tariff for LPGCL has not been approved by UPERC.
  • Majority of the land are under lease agreements and inability to renew the agreement or termination of the agreement could impact revenue and operations.
  • Financial results subject to seasonal variations.
  • Operations could be affected by strikes or increased wage demands by the employees.