Bajaj Energy IPO 2025: Powering Up India’s Grid and Investor Portfolios

Bajaj Energy IPO 2025: Powering Up India’s Grid and Investor Portfolios

Company Introduction: Powering Uttar Pradesh and Beyond

Bajaj Energy Limited, part of the Shishir Bajaj Group, is one of India’s largest private-sector thermal power producers. It operates multiple coal-based plants across Uttar Pradesh and plays a key role in electrification and infrastructure development in the region.

What Is the IPO Funding For?

The IPO aims to raise ₹5,450 crore, with:

₹5,150 crore as fresh issue
₹300 crore via Offer for Sale (OFS)
Primary objective: Acquire the remaining 79.31% stake in Lalitpur Power Generation Company Limited (LPGCL), making it a wholly owned subsidiary. Funds will also be used for debt repayment and corporate expansion.

Business Model Reset: Consolidation and Control

Bajaj Energy is shifting from a fragmented ownership model to full control of its largest asset—LPGCL’s 1,980 MW thermal plant. This move will:

Improve operational efficiency
Streamline decision-making
Enhance financial transparency
Strengthen its position in the power sector

IPO Overview

IPO Details	Figures
IPO Window	Mid-August 2025
Issue Size	₹5,450 crore
Fresh Issue	₹5,150 crore
Offer for Sale (OFS)	₹300 crore
Price Band	To be announced
Face Value	₹10 per share
Listing Exchanges	BSE & NSE
Promoters	Bajaj Power Ventures, LPGCL, Kiritman Power

Peer Competition in Power Sector

Competitor	Segment	USP
NTPC Ltd.	Public sector thermal	Largest power producer, government-backed
Adani Power	Private thermal & solar	Aggressive expansion, diversified energy mix
JSW Energy	Thermal & renewables	Focus on green energy transition
Tata Power	Integrated energy	Solar, EV charging, and distribution networks
SJVN Ltd.	Hydro & solar	Government-backed, clean energy focus

Bajaj Energy’s edge lies in its regional dominance, thermal capacity, and strategic consolidation.

Should You Invest?

Pros:

Strategic acquisition of LPGCL
Strong regional presence in high-demand zones
Backing of Bajaj Group
Infrastructure push by government

Cons:

Thermal power faces ESG scrutiny.
Historical revenue decline (FY16–FY18).
IPO price band and GMP still unclear.

Ideal for: Investors seeking exposure to India’s infrastructure and energy growth, with medium- to long-term horizon.

Conclusion

Bajaj Energy’s IPO is a bold move to consolidate assets and strengthen its power play in India’s energy landscape. While thermal energy has its challenges, the company’s strategic reset and regional dominance make it a potentially rewarding investment especially for those betting on India’s infrastructure boom.