Bajaj Energy’s IPO is turning heads in the Indian stock market for good reason! As one of the most awaited power sector listings of 2025, it’s got big and small investors buzzing with excitement.
With India’s energy demand on the rise and the government doubling down on infrastructure, this IPO couldn’t have come at a better time.
What makes Bajaj Energy stand out? Well, it’s a major player in Uttar Pradesh, boasts a solid thermal power capacity, and comes with the strong backing of the Bajaj Group.
As the market gears up for this high-profile listing, we’re here to break down everything you need to know—pricing, lot size, GMP trends, and more.
Whether you’re a newbie or a pro in the stock market game, getting the full picture of Bajaj Energy’s IPO will help you make smarter investment moves.
Let’s dive in!
Bajaj Energy IPO: Key Details
The Bajaj Energy IPO includes both a fresh issue of shares and an offer for sale (OFS). The total IPO size is expected to be around ₹5,450 crore, with ₹5,150 crore coming from the fresh issue and ₹300 crore from the OFS by existing shareholders.
The main goal of this IPO is to raise funds to acquire the remaining 79.31% stake in Lalitpur Power Generation Company Limited (LPGCL). The money will also help with debt repayment and other corporate needs. This move will give Bajaj Energy full control over one of its biggest power assets, strengthening its position in the sector.
Check out this table showcasing the prime details of the IPO launch:
| Details | Information |
| Bajaj Energy IPO Opening Date | To be announced |
| Bajaj Energy IPO Allotment Finalization | To be announced |
| Listing Platforms | Expected to be listed on BSE and NSE |
| Price Band | To be announced |
| Face Value | To be announced |
| Bajaj Energy IPO Total Issue Size | Approximately ₹5,450 crore, comprising a fresh issue of ₹5,150 crore and an offer for sale of ₹300 crore. |
| Fresh Issue | ₹5,150 crore |
| Bajaj Energy Total IPO Value | Approximately ₹5,450 crore |
| Company | Bajaj Energy |
| Minimum Investment | To be announced |
| Bajaj Energy IPO GMP | Not available currently |
| Registrar | To be announced |
The IPO will follow SEBI regulations, with specific portions set aside for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and retail investors.
Leading the IPO process are Edelweiss Financial Services, IIFL Holdings, SBI Capital Markets, and IDBI Capital Markets as the Book Running Lead Managers (BRLMs).
About Bajaj Energy Ltd
Established in 2008, Bajaj Energy Ltd is a key player in India’s thermal power sector and a proud part of the renowned Bajaj Group. Based in Uttar Pradesh, the company is a major force in keeping one of India’s most populous states powered up.
Bajaj Energy specializes in coal-based thermal power generation, operating five plants across Uttar Pradesh with a total capacity of 450 MW. It also holds a significant stake in Lalitpur Power Generation Company Limited (LPGCL), which runs a massive 1,980 MW super-critical thermal power plant.
With a strong focus on operational efficiency and energy infrastructure, Bajaj Energy has cemented its position as a dominant regional player, ensuring reliable power supply at scale.
Financials of Bajaj Energy
According to the Draft Red Herring Prospectus (DRHP) available via Groww, Bajaj Energy’s financial performance for FY16–FY18 was:
| Metric | FY16 | FY17 | FY18 |
| Total Income (₹ Cr) | 1,407.10 | 1,405.88 | 897.62 |
| PAT (₹ Cr) | 1,028.35 | 882.5 | 416.82 |
| Total Assets (₹ Cr) | 35,900.48 | 36,840.97 | 34,741.55 |
Bajaj Energy’s financials show a declining trend in revenue and profitability over the years leading up to its IPO, which could raise concerns among investors.
- Total Income: The company’s revenue has significantly dropped from ₹1,407.10 crore in FY16 and ₹1,405.88 crore in FY17 to just ₹897.62 crore in FY18. This sharp decline could indicate lower power generation, pricing pressures, or operational inefficiencies.
- Profit After Tax (PAT): The company’s net profit has also fallen, from ₹1,028.35 crore in FY16 to ₹882.5 crore in FY17 and further down to ₹416.82 crore in FY18. This consistent decline suggests rising costs, lower demand, or reduced margins, which might make potential investors cautious.
- Total Assets: While the company’s total assets remained relatively stable around ₹35,900-36,800 crore in FY16 and FY17, they slightly declined to ₹34,741.55 crore in FY18. This could indicate asset devaluation, repayments, or lower investments in infrastructure expansion.
What This Means for the IPO
- The declining financials might raise red flags for investors, making them question the company’s growth trajectory.
- The company’s objective to use IPO proceeds for acquiring the remaining stake in LPGCL and debt repayment might be an effort to consolidate its position and improve future earnings.
- Investors will likely scrutinize whether Bajaj Energy has a strong turnaround strategy to reverse the downward trend and make the IPO a valuable long-term investment.
Overall, while the IPO may still attract interest due to Bajaj Energy’s market position and the growing energy sector, its financial health could impact valuations and investor confidence.
SWOT Analysis of the Company
Strengths
- Strong promoter group (Bajaj Group)
- Established presence in North India
- Captive coal supply for consistent fuel access
Weaknesses
- High debt burden
- Exposure to thermal power amid ESG concerns
Opportunities
- Government’s infra and power push
- Rising regional electricity demand
Threats
- Coal price volatility
- Regulatory risk & renewable energy competition
India’s power sector is a beast—ranking third globally in electricity generation—and it’s evolving fast to keep up with the country’s growing energy needs.
As of October 2023, India’s total installed power capacity stood at a massive 428.73 GW, with over 56% coming from thermal energy (coal, gas, and diesel).
That’s where Bajaj Energy fits in—it’s a key player in the thermal power space, operating right in the heart of this dominant segment.
What’s driving the sector?
The government is all in on boosting the power industry. They’re allowing 100% foreign investment and rolling out big programs like the Revamped Distribution Sector Scheme (RDSS) to make electricity distribution more efficient and financially stable.
For power producers like Bajaj Energy, this means better cash flow and higher demand in the long run.
The Big Picture: 24×7 Power & a Greener Future
India is pushing hard for round-the-clock electricity and a more reliable power grid. That creates a double opportunity for companies like Bajaj Energy:
- Meet current demand with thermal energy
- Prepare for a cleaner future by adapting to newer, greener tech
With power consumption expected to hit 1,874 TWh by 2040, the sector has a strong long-term outlook.
What This Means for Bajaj Energy
Operating in power-hungry states like Uttar Pradesh, Bajaj Energy is in a good spot to benefit from rising energy demand. But it’s not all smooth sailing—there are challenges too:
- Stricter environmental regulations
- Evolving government policies
- The need for strong financial management
The Road Ahead
India’s energy demand will keep rising, thanks to urbanization, industrial growth, and rural electrification. Thermal power still matters, but there’s increasing pressure to go green. Solar and wind energy are stepping up, making competition fiercer.
For Bajaj Energy, the key is to balance both worlds—leveraging its strong regional presence while preparing for cleaner energy solutions. If they manage finances well and optimize operations, the future looks bright.
What to Expect from the Bajaj Energy IPO
- Large IPO Size: At approximately ₹5,450 crore, this is one of the biggest IPOs in the power sector, signaling high investor interest.
- Focus on Expansion: A major chunk of the funds (₹5,150 crore) will be used to acquire the remaining stake in Lalitpur Power Generation Company Limited (LPGCL), giving Bajaj Energy full control over this key asset.
- Debt Reduction Strategy: Part of the funds will be used for debt repayment, which could improve financial stability in the long run.
- Thermal Power Dependence: While India still relies on coal-based power, there is increasing pressure to shift toward renewables, which could impact long-term growth.
- Financial Concerns: The company’s revenues and profits have been declining, making some investors cautious about its profitability.
- Backed by a Strong Group: Being part of the Bajaj Group adds credibility and investor confidence, despite financial challenges.
- Sectoral Tailwinds: The Indian government’s push for power infrastructure and 24×7 electricity could benefit Bajaj Energy, ensuring steady demand for thermal power in the near future.
Bajaj Energy IPO is Good or Bad?
Who Should Invest in Bajaj Energy IPO?
- Long-Term Investors: If you believe in the power sector’s growth potential and the company’s ability to turn around its financials.
- Those Seeking Exposure to Thermal Power: Investors looking to bet on coal-based power generation, especially in regions like Uttar Pradesh where demand is high.
- High-Risk Investors: Those willing to take a calculated risk on a company that has strong assets but faces financial headwinds.
Who Should Avoid Investing in Bajaj Energy IPO?
- ESG-Focused Investors: If you prefer investing in clean energy and renewables, this IPO may not align with your goals.
- Short-Term Traders: Given the company’s declining financials, stock price movements may be volatile in the short term.
- Risk-Averse Investors: If you’re looking for stable earnings and strong profitability, Bajaj Energy’s recent performance might be a concern.
This IPO could be an interesting play in India’s evolving power sector, but financial risks and regulatory challenges need to be considered before making an investment.
Bajaj Energy’s IPO is shaping up to be one of the biggest in the power sector, and it’s got everyone talking! With India’s energy demand skyrocketing and the government pumping money into infrastructure, the timing seems spot on. Plus, being backed by the Bajaj Group definitely adds credibility.
Bottom Line
But let’s be real—there are some red flags. The company’s financials have been on a downward trend, with revenues and profits dipping over the years. While the IPO funds will help Bajaj Energy gain full control over its biggest asset and reduce debt, investors will be watching closely to see if it can turn things around.
On the flip side, India isn’t ditching coal just yet. Thermal power still dominates, and Bajaj Energy is positioned right in the middle of it. So, if you believe in the sector’s long-term play and have a high-risk appetite, this IPO could be worth considering.
That said, if you’re into ESG investing or looking for quick gains, you might want to sit this one out. The IPO is definitely exciting, but whether it’s a power-packed opportunity or a dimly lit bet—well, that’s for the market to decide!
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FAQs
What is the issue price of Bajaj Energy IPO?
As of now, Bajaj Energy Limited has not announced the issue price for its upcoming Initial Public Offering (IPO). The company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), indicating plans to raise approximately ₹5,450 crore. This includes a fresh issue of shares worth ₹5,150 crore and an offer for sale (OFS) by Bajaj Power Ventures Private Limited amounting to ₹300 crore. The specific price band per share will be determined closer to the IPO date.
Is Bajaj Energy profitable?
Yes, Bajaj Energy Limited has demonstrated profitability in recent financial years. For the fiscal year ending March 31, 2024, the company reported a Profit After Tax (PAT) of ₹93.14 crore. However, this represents a decrease from the previous year’s PAT of ₹161.82 crore. The company’s EBITDA margin also declined from 31.60% in FY2023 to 23.14% in FY2024. These figures indicate that while Bajaj Energy remains profitable, it has experienced a reduction in profitability over the specified period.
Who is the parent company of Bajaj Energy?
Bajaj Energy Limited is part of the Shishir Bajaj Group. As of December 31, 2024, the shareholding structure is as follows: Bajaj Power Ventures Private Limited holds 70.69%, Lalitpur Power Generation Company Limited (LPGCL) holds 21.83%, and Kiritman Power Private Limited holds 7.48%. The promoter, Mr. Kushagra Nayan Bajaj, serves as the Chairman and Non-Executive Director of Bajaj Energy Limited.
How to buy Bajaj Energy IPO?
To buy the Bajaj Energy IPO, you need a Demat and trading account. Once the IPO opens, log into your broker’s platform, go to the IPO section, select “Bajaj Energy IPO,” enter the number of lots you want, and apply using UPI or net banking (ASBA). If you’re allotted shares, they’ll be credited to your Demat account on listing day.
