Powering Up: Analyzing Bajaj Energy Limited's IPO and Share Price Potential

 



Bajaj Energy Share Price: A Comprehensive Overview


Bajaj Energy Limited, part of the famed Bajaj Group of agencies, has been making headlines with its upcoming Initial Public Offering (IPO). The organization, which has been in operation since 2008, plans to raise a huge budget via this public issue. In this article, we can delve into the details of the Bajaj Energy IPO, which include its issue size, price band, and different key factors that investors ought to recognize.


Issue Size and Price Band


The total issue size of Bajaj Energy Limited's IPO is slated to be around Rs. 5,450 crore, which includes each offer for sale (OFS) from the company’s promoters in addition to a fresh issue of shares. The size of the OFS factor of the issue comes to as much as about Rs. 300 crores, whereas the last Rs. 5,150 crores could be generated out of the fresh issue of shares. However, the price band for the IPO has no longer been determined as of yet, and it'll be introduced once the final Red Herring Prospectus (RHP) is filed with the Securities and Exchange Board of India (SEBI).


Financial Performance


Bajaj Energy Limited has a sturdy financial record, with its overall assets increasing from Rs. 34,741.55 crore in FY 2018 to Rs. 36,840.97 crore in FY 2017, and further to Rs. 35,900.48 crore in FY 2016. The company’s overall income has also seen constant growth, from Rs. 8,976.25 crore in FY 2018 to Rs. 14,058.76 crore in FY 2017, after which Rs. 14,070.99 crore in FY 2016. The company’s income after tax has additionally shown a fine trend, with a profit of Rs. 416.82 crores in FY 2018, Rs. 882.50 crores in FY 2017, and Rs. 1,028.35 crores in FY 2016.


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Strengths and Risks


The company has several strengths that make it an appealing growth capital. For example, it's far expected to complete a 100% electrification of villages, which will probably cause an enormous growth in demand for its services. Bajaj Energy Limited also has a relatively versed management team with years of experience in the power generation sector. Additionally, the company has an extended-time period settlement with Central Coal Fields Ltd. For gasoline supply, that's a subsidiary of Coal India Ltd. 

However, the company is presently concerned about an open dispute with UPPCL concerning payment tariffs, which could affect its economic performance if the dispute is experienced against it. The company additionally faces risks related to environmental harm and pollutants, in addition to the hazard of defaulting on its loans.


Peer Comparison


Bajaj Energy Limited's financial performance may be in comparison with that of its peers in the power generation sector. For instance, Tata Power Company Limited has a market capitalization of Rs. 81,001.86 crores and a PAT growth of 58.31%. NTPC Limited has a marketplace capitalization of Rs. 1,60,916 crore and a PAT increase of 20.58%. JSW Energy Limited has a market capitalization of Rs. 58,001.44 crore and a PAT increase of 13.71%. Torrent Power has a market capitalization of Rs. 26,914.54 crore and a PAT increase of 23.85%.


Conclusion


To conclude, investors seeking to invest in the power generation zone may find Bajaj Energy Limited's initial public offering (IPO) to be a compelling option. The company is a desirable candidate for finance due to its solid financial history, strategic agreements, and skilled management team. Investors should be mindful of the company's risks, too, including the possibility of loan default and its ongoing battle with UPPCL. When the price range and IPO details are confirmed, investors will have an improved comprehension of Bajaj Energy Limited's funding capability.

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