NEW DELHI :
The capital markets regulator Securities and Exchange Board of India (Sebi) has granted approval to Bajaj Energy to raise an estimated ₹5,450 crore through an initial public offer (IPO).
Bajaj Energy had filed its IPO papers with the markets regulator in April and obtained its observations on 30 August.
The company plans to utilise the proceeds from the share sale to buy 6.99 crore equity shares of Lalitpur Power Generation Company from Bajaj Power Ventures and Bajaj Hindustan Sugar for ₹4,972 crore, and the remaining amount will be utilised for general expenses.
Bajaj Energy's IPO comprises fresh shares aggregating up to ₹5,150 crore and an offer-for-sale (OFS) of shares up to ₹300 crore by Bajaj Power Ventures.
The company intends to acquire Lalitpur Power's 1,980 MW from the proceeds of the share sale.
Bajaj Power 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.