Bajaj Energy has finally received the go-ahead signal from the market regulator Sebi (Security and Exchange Board of India) to float an initial public offer (IPO) worth INR 5,450 crore. The company had filed its draft papers with Sebi in April and got the “observations” from regulators on 30th August, as per the latest update.

Needless to say, Sebi’s observation is essential for any company which wishes to launch public issues like IPO and FPO.

The company’s initial public offer comprises a fresh issuance of shares around INR 5,150 crore & also an offer for sale aggregating up to INR 300 crore by the Bajaj Power Ventures, according to draft papers.

The company will utilize the proceeds to buy 6,99,36,900 equity shares of Lalitpur Power Generation Company for INR 4,972 crore and the remaining amount will be used for general corporate purposes. The company also said it intends to get Lalitpur Power’s 1,980 MW from proceeds.

Edelweiss Financial Services, SBI Caps, IIFL Holdings are book-running managers to this IPO.