The capital markets regulator SEBI has given approval to Bajaj Energy to raise an estimated Rs5,450cr through an initial public offer (IPO), according to the media reports. The company had filed its IPO papers with the markets regulator in April and obtained its observations on August 30, the media reports added.
Further, the media statement added that the company is planning to utilise the proceeds from the share sale to buy 6.99cr equity shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindustan Sugar for Rs4,972cr, and the remaining amount will be utilised for general expenses.
According to draft papers, the company’s IPO comprises fresh issuance of shares aggregating up to Rs5,150cr and an offer for sale of scrips up to Rs300cr by Bajaj Power Ventures.
The company intends to acquire Lalitpur Power's 1,980 MW from the proceeds of the share sale and it owns 100% stake in Bajaj Energy.
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.