Post on 11-Aug-2020
DRAFT RED HERRING PROSPECTUSDated April 4, 2019
(This Draft Red Herring Prospectus will be updated upon filing with the RoC)Please read section 32 of the Companies Act, 2013
Book Built Offer
BAJAJ ENERGY LIMITEDOur Company was originally incorporated at Mumbai as Bajaj Eco-chem Products Private Limited on June 27, 2008 as a private limited company under the Companies Act, 1956, registered with the Registrar of Companies, Maharashtra at Mumbai. For details of change in our name and the address of our Registered Office, please see the section entitled “History and Certain Corporate Matters” on page 130.
Registered Office: Khambarkhera, Shardanagar Road, Lakhimpur Kheri 261 506Corporate Office: 106-107, Bajaj Bhawan, 10th Floor, Jamnalal Bajaj Marg, 226, Nariman Point, Mumbai 400 021
Tel (Corporate Office): +91 22 2204 9056 / +91 22 2204 9058Contact Person: Alok Desai, Company Secretary and Compliance Officer
E-mail: complianceofficer@bajajenergy.com; Website: www.bajajenergy.com Corporate Identity Number: U40102UP2008PLC046764
PROMOTERS OF OUR COMPANY: BAJAJ POWER VENTURES PRIVATE LIMITED, SHISHIR BAJAJ, MINAKSHI BAJAJ, KUSHAGRA BAJAJ AND APOORVA BAJAJ
INITIAL PUBLIC OFFER OF UP TO [●] EQUITY SHARES OF FACE VALUE OF ` 10 EACH (THE “EQUITY SHARES”) OF BAJAJ ENERGY LIMITED (OUR “COMPANY”) FOR CASH AT A PRICE* OF ̀ [●] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ̀ [●] PER EQUITY SHARE) (THE “OFFER PRICE”) AGGREGATING UP TO ̀ 54,500 MILLION (THE “OFFER”) COMPRISING A FRESH ISSUE OF UP TO [●] EQUITY SHARES AGGREGATING UP TO ` 51,500 MILLION BY OUR COMPANY (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO [●] EQUITY SHARES BY BAJAJ POWER VENTURES PRIVATE LIMITED AGGREGATING UP TO ` 3,000 MILLION (THE “PROMOTER SELLING SHAREHOLDER” AND SUCH OFFER, THE “OFFER FOR SALE”). THE OFFER WILL CONSTITUTE [●] % OF THE POST OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.
THE FACE VALUE OF EQUITY SHARES IS ` 10 EACH. THE OFFER PRICE IS [●] TIMES THE FACE VALUE OF THE EQUITY SHARES. THE PRICE BAND AND THE MINIMUM BID LOT WILL BE DECIDED BY OUR COMPANY IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS (THE “BRLMS”) AND THE CO-BOOK RUNNING LEAD MANAGER (THE “CO-BRLM”, AND TOGETHER WITH THE BRLMS, THE “LEAD MANAGERS”) AND WILL BE ADVERTISED IN (I) [●] EDITIONS OF [●] (A WIDELY CIRCULATED ENGLISH NATIONAL DAILY NEWSPAPER), AND (II) [●] EDITIONS OF [●] (A WIDELY CIRCULATED HINDI NATIONAL DAILY NEWSPAPER, HINDI ALSO BEING THE REGIONAL LANGUAGE OF UTTAR PRADESH, WHERE THE REGISTERED OFFICE OF OUR COMPANY IS LOCATED), AT LEAST TWO WORKING DAYS PRIOR TO THE BID/OFFER OPENING DATE AND SHALL BE MADE AVAILABLE TO BSE LIMITED (“BSE”) AND NATIONAL STOCK EXCHANGE OF INDIA LIMITED (“NSE”, AND TOGETHER WITH BSE, THE “STOCK EXCHANGES”) FOR THE PURPOSE OF UPLOADING ON THEIR RESPECTIVE WEBSITES.
In case of any revision to the Price Band, the Bid/Offer Period will be extended by at least three additional Working Days following such revision of the Price Band, subject to the Bid/Offer Period not exceeding 10 Working Days. In cases of force majeure, banking strike or similar circumstances, our Company may, for reasons to be recorded in writing, extend the Bid/Offer Period for a minimum of three Working Days, subject to the Bid/Offer Period not exceeding 10 Working Days. Any revision in the Price Band and the revised Bid/Offer Period, if applicable, will be widely disseminated by notification to the Stock Exchanges, by issuing a public notice, and also by indicating the change on the respective websites of the Lead Managers and at the terminals of the Syndicate Members and by intimation to Self-Certified Syndicate Banks (“SCSBs”), other Designated Intermediaries and the Sponsor Bank, as applicable.
This Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations and through a Book Building Process wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). Our Company may, in consultation with the Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”), out of which at least one-third shall be available for allocation to domestic Mutual Funds only, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders other than Anchor Investors, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account (including UPI ID in case of RIBs) which will be blocked by the SCSBs, or the bank accounts linked with the UPI ID, as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, please see the section entitled “Offer Procedure” on page 350.
RISKS IN RELATION TO THE FIRST OFFER
This being the first public issue of our Company, there has been no formal market for the Equity Shares. The face value of each Equity Shares is ` 10. The Floor Price, Cap Price and Offer Price (determined and justified by our Company in consultation with the Lead Managers, in accordance with the SEBI ICDR Regulations, and on the basis of the assessment of market demand for the Equity Shares by way of the Book Building Process as stated in the section entitled “Basis for Offer Price” on page 74) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISK
Investments in equity and equity-related securities involve a degree of risk and Bidders should not invest any funds in the Offer unless they can afford to take the risk of losing their investment. Bidders are advised to read the risk factors carefully before taking an investment decision in the Offer. For taking an investment decision, Bidders must rely on their own examination of our Company and the Offer, including the risks involved. The Equity Shares in the Offer have neither been recommended, nor approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of the contents of this Draft Red Herring Prospectus. Specific attention of the Bidders is invited to the section entitled “Risk Factors” on page 21.
COMPANY’S AND PROMOTER SELLING SHAREHOLDER’S ABSOLUTE RESPONSIBILITY
Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Red Herring Prospectus contains all information with regard to our Company and the Offer, which is material in the context of the Offer, that the information contained in this Draft Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Draft Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. Further, the Promoter Selling Shareholder accepts responsibility for, and confirms, only statements made or undertaken expressly by the Promoter Selling Shareholder in this Draft Red Herring Prospectus specifically pertaining to itself and the Offered Shares and assumes responsibility that such statements are true and correct in all material respects and not misleading in any material respect. The Promoter Selling Shareholder assumes no responsibility for any other statements, including, inter alia, any of the statements made by, or relating to, our Company or its business in this Draft Red Herring Prospectus.
LISTING
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on BSE and NSE. Our Company has received ‘in-principle’ approvals from BSE and NSE for the listing of the Equity Shares pursuant to letters dated [●] and [●], respectively. For the purposes of the Offer, the Designated Stock Exchange shall be [●]. A copy of the Red Herring Prospectus and the Prospectus shall be delivered to the RoC in accordance under Section 26(4) of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of the Red Herring Prospectus up to the Bid/Offer Closing Date, please see the section entitled “Material Contracts and Documents for Inspection” on page 367.
BOOK RUNNING LEAD MANAGERS CO-BOOK RUNNING LEAD MANAGER REGISTRAR TO THE OFFER
Edelweiss Financial Services Limited14th Floor, Edelweiss HouseOff C.S.T. RoadKalinaMumbai 400 098Tel: +91 22 4009 4400E-mail: bajajenergy.ipo@edelweissfin.comWebsite: www.edelweissfin.comContact Person: Disha Doshi / Monik Shah
IIFL Holdings Limited10th Floor, IIFL Centre, Kamala CitySenapati Bapat MargLower Parel (West)Mumbai 400 013Tel: +91 22 4646 4600E-mail: bel.ipo@iiflcap.comWebsite: www.iiflcap.comContact Person: Nishita Mody / Harshit Talesara
SBI Capital Markets Limited202, Maker Tower ‘E’Cuffe ParadeMumbai 400 005Tel: +91 22 2217 8300E-mail: bel.ipo@sbicaps.comWebsite: www.sbicaps.comContact Person:Karan Savardekar / Sambit Rath
IDBI Capital Markets & Securities Limited6th Floor, IDBI Tower WTC Complex, Cuffe ParadeMumbai 400 005Tel: +91 22 2217 1700E-mail: bel.ipo@idbicapital.comWebsite: www.idbicapital.comContact Person: Sumit Singh / Subodh Gandhi
Link Intime India Private LimitedC-101, 1st floor, 247 ParkLal Bahadur Shastri MargVikhroli (West)Mumbai 400 083Tel: +91 22 4918 6000E-mail: bajajenergy.ipo@linkintime.co.inWebsite: www.linkintime.co.inContact Person: Shanti Gopalkrishnan
BID/OFFER PROGRAMME
BID/OFFER OPENS ON [●]*
BID/OFFER CLOSES ON [●]**
* Our Company may, in consultation with the Lead Managers, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.
** Our Company may, in consultation with the Lead Managers, consider closing the Bid/Offer Period for QIBs one Working Day prior to the Bid/Offer Closing Date in accordance with the SEBI ICDR Regulations.
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TABLE OF CONTENTS
SECTION I: GENERAL ................................................................................................................................................... 1
DEFINITIONS AND ABBREVIATIONS ...................................................................................................................... 1 CERTAIN CONVENTIONS, PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA ................. 12 FORWARD-LOOKING STATEMENTS ..................................................................................................................... 15 SUMMARY OF THE DRAFT RED HERRING PROSPECTUS .................................................................................. 17
SECTION II: RISK FACTORS ..................................................................................................................................... 21
SECTION III: INTRODUCTION.................................................................................................................................. 44
THE OFFER .................................................................................................................................................................. 44 SUMMARY OF FINANCIAL INFORMATION .......................................................................................................... 46 GENERAL INFORMATION ........................................................................................................................................ 52 CAPITAL STRUCTURE .............................................................................................................................................. 61 OBJECTS OF THE OFFER ........................................................................................................................................... 69 BASIS FOR OFFER PRICE .......................................................................................................................................... 74 STATEMENT OF TAX BENEFITS ............................................................................................................................. 77
SECTION IV: ABOUT OUR COMPANY .................................................................................................................... 81
INDUSTRY OVERVIEW ............................................................................................................................................. 81 OUR BUSINESS ......................................................................................................................................................... 109 REGULATIONS AND POLICIES .............................................................................................................................. 124 HISTORY AND CERTAIN CORPORATE MATTERS ............................................................................................. 130 OUR MANAGEMENT ............................................................................................................................................... 136 OUR PROMOTERS AND PROMOTER GROUP ...................................................................................................... 155 DIVIDEND POLICY ................................................................................................................................................... 160
SECTION V: FINANCIAL INFORMATION ............................................................................................................ 161
RESTATED CONSOLIDATED FINANCIAL INFORMATION ............................................................................... 161 LPGCL RESTATED FINANCIAL INFORMATION ................................................................................................. 208 OTHER FINANCIAL INFORMATION ..................................................................................................................... 254 CAPITALISATION STATEMENT ............................................................................................................................ 255 FINANCIAL INDEBTEDNESS ................................................................................................................................. 256 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS ............................................................................................................................................................ 259
SECTION VI: UNAUDITED RESTATED PROFORMA FINANCIAL INFORMATION ................................... 298
SECTION VII: LEGAL AND OTHER INFORMATION ......................................................................................... 309
OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS .................................................................. 309 GOVERNMENT AND OTHER APPROVALS .......................................................................................................... 317 OUR GROUP COMPANIES ....................................................................................................................................... 318 OTHER REGULATORY AND STATUTORY DISCLOSURES ............................................................................... 330
SECTION VIII: OFFER INFORMATION ................................................................................................................ 343
TERMS OF THE OFFER ............................................................................................................................................ 343 OFFER STRUCTURE ................................................................................................................................................. 348 OFFER PROCEDURE ................................................................................................................................................ 350 RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES ............................................................. 362
SECTION IX: DESCRIPTION OF EQUITY SHARES AND TERMS OF ARTICLES OF ASSOCIATION .... 363
SECTION X: OTHER INFORMATION .................................................................................................................... 367
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ..................................................................... 367 DECLARATION ......................................................................................................................................................... 370
ANNEXURE 1 - VALUATION REPORT................................................................................................................... 372
SECTION I: GENERAL
DEFINITIONS AND ABBREVIATIONS
This Draft Red Herring Prospectus uses certain definitions and abbreviations which, unless the context otherwise indicates
or implies, or unless otherwise specified, shall have the meaning as provided below. References to any legislations, acts,
regulations, rules, guidelines or policies shall be to such legislations, acts, regulations, rules, guidelines or policies as
amended, supplemented, or re-enacted, from time to time, and any reference to a statutory provision shall include any
subordinate legislation made, from time to time, under such provision.
The words and expressions used in this Draft Red Herring Prospectus, but not defined herein shall have the meaning
ascribed to such terms under the SEBI ICDR Regulations, the Companies Act, the SCRA, and the Depositories Act and
the rules and regulations made thereunder.
The terms not defined herein but used in the sections entitled “Statements of Tax Benefits”, “Restated Consolidated
Financial Information”, “Outstanding Litigation and Material Developments”, “Description of Equity Shares and Terms
of Articles of Association” and “Offer Procedure” on pages 77, 161, 309, 363, and 350, respectively, shall have the
meanings ascribed to such terms in these respective sections.
General Terms
Term Description
“our Company”, “the Issuer”
or “BEL”
Bajaj Energy Limited, a company incorporated under the Companies Act, 1956 and
having its registered office at Khambarkhera, Shardanagar Road, Lakhimpur Kheri 261
506
“we”, “us” or “our” Our Company together with LPGCL
Company and Promoter Selling Shareholder Related Terms
Term Description
Articles of Association or
AoA
Articles of association of our Company, as amended from time to time
Associate LPGCL
Audit Committee The audit committee of the Board described in the section entitled “Our Management”
on page 142
Board or Board of Directors The board of directors of our Company or a duly constituted committee thereof
BHSL Bajaj Hindusthan Sugar Limited
BHSL Share Purchase
Agreement
The share purchase agreement dated March 31, 2019 between our Company, our
Associate, BPVPL and BHSL BPVPL Bajaj Power Ventures Private Limited
BPVPL Share Purchase
Agreement
The share purchase agreement dated March 31, 2019 between our Company, our
Associate, BHSL and BPVPL Corporate Office Corporate office of our Company located at 106-107, Bajaj Bhawan, 10th Floor, Jamnalal
Bajaj Marg, 226, Nariman Point, Mumbai 400 021
Corporate Promoter Corporate promoter of our Company, namely, BPVPL. For further details, please see the
section entitled “Our Promoters and Promoter Group” on page 155
Corporate Social
Responsibility Committee or
CSR Committee
The corporate social responsibility committee of the Board described in the section
entitled “Our Management” on page 146
Directors Directors of our Company
Equity Shares Equity shares of our Company each having a face value of ₹ 10
Group Companies Companies (other than our Corporate Promoter) with which there were related party
transactions as disclosed in the Restated Consolidated Financial Information as covered
under the applicable accounting standards and also other companies as considered
material by our Board, as identified in the section entitled “Our Group Companies” on
page 318
Independent Director A non-executive, independent director of our Company
Individual Promoters Individual promoters of our Company, namely, Shishir Bajaj, Minakshi Bajaj, Kushagra
Bajaj and Apoorva Bajaj. For further details, please see the section entitled “Our
Promoters and Promoter Group” on page 155
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Term Description
IPO Committee The IPO committee of the Board described in the section entitled “Our Management” on
page 147
Joint Statutory Auditors Joint statutory auditors of our Company, being R. S. Dani & Company, Chartered
Accountants and BSR & Co. LLP
Key Management Personnel Key management personnel of our Company in terms of Regulation 2(1)(bb) of the SEBI
ICDR Regulations and Section 2(51) of the Companies Act, 2013. For further details,
please see the section entitled “Our Management” on page 136
LPGCL Lalitpur Power Generation Company Limited
LPGCL Restated Financial
Information
The restated financial information of LPGCL for the nine months ended December 31,
2018 and the Fiscals 2018, 2017 and 2016, which comprise the restated summary
statement of assets and liabilities, the restated summary statement of profit and loss and
the restated summary statement of cash flow, restated summary statement of changes in
equity together with the annexures and notes thereto and the examination report thereon,
as compiled from the Indian Accounting Standard (Ind AS) financial statements for
respective period/year and in accordance with the requirements provided under the
provisions of the Companies Act, SEBI ICDR Regulations and the Guidance Note on
“Reports in Company prospectuses (Revised 2019)” issued by the ICAI.
Memorandum of Association
or MoA
Memorandum of association of our Company, as amended from time to time
Nomination and
Remuneration Committee
The nomination and remuneration committee of the Board described in the section
entitled “Our Management” on page 144
Promoters The Corporate Promoter and the Individual Promoters
Promoter Group Persons and entities constituting the promoter group in accordance with Regulation
2(1)(pp) of the SEBI ICDR Regulations. For details of our Promoter Group, please see
the section entitled “Our Promoters and Promoter Group” on page 155
Promoter Selling Shareholder BPVPL
Unaudited Restated Proforma
Financial Information
The unaudited restated proforma consolidated financial information of our Company
reflecting the proposed acquisition of LPGCL i.e. conversion of associate into wholly
owned subsidiary, which comprise the unaudited restated proforma consolidated balance
sheets as December 31, 2018, and the restated proforma consolidated statement of profit
and loss for the nine months ended December 31, 2018 and the Fiscal 2018, together
with the notes thereto.
Registered Office Registered office of our Company located at Khambarkhera, Shardanagar Road,
Lakhimpur Kheri 261 506
Registrar of Companies or
RoC
Registrar of Companies, Uttar Pradesh & Uttarakhand at Kanpur
Restated Consolidated
Financial Information
The restated consolidated financial information of our Company and its Associate for
the nine months ended December 31, 2018 and Fiscals 2018, 2017 and 2016, which
comprise the restated consolidated summary statement of assets and liabilities, the
restated consolidated summary statement of profit and loss, the restated consolidated
summary statement of cash flow and restated consolidated summary statement of
changes in equity together with the annexures and notes thereto and the examination
report thereon, as compiled from the Indian Accounting Standard (Ind AS) financial
statements for respective period/year and in accordance with the requirements provided
under the provisions of the Companies Act, SEBI ICDR Regulations and the Guidance
Note on “Reports in Company Prospectuses (Revised 2019)” issued by ICAI.
Risk Management Committee The risk management committee of the Board described in the section entitled “Our
Management” on page 146
Senior Personnel The senior personnel of LPGCL described in the section entitled “Our Management” on
page 136
Shareholders Shareholders of our Company who hold Equity Shares from time to time
Share Purchase Agreements The BHSL Share Purchase Agreement and the BPVPL Share Purchase Agreement
Stakeholders’ Relationship
Committee
The stakeholders’ relationship committee of the Board described in the section entitled
“Our Management” on page 145
2
Offer Related Terms
Term Description
Acknowledgement Slip The slip or document issued by the Designated Intermediary to a Bidder as proof of
registration of the Bid cum Application Form
Allot, Allotment or Allotted Unless the context otherwise requires, allotment or transfer, as the case may be, of the
Equity Shares pursuant to the Offer to the successful Bidders
Allotment Advice A note or advice or intimation of Allotment sent to the successful Bidders who have
been or are to be Allotted Equity Shares after the Basis of Allotment has been approved
by the Designated Stock Exchange
Allottee A successful Bidder to whom the Equity Shares are Allotted
Anchor Investor A Qualified Institutional Buyer, applying under the Anchor Investor Portion in
accordance with the requirements specified in the SEBI ICDR Regulations and the Red
Herring Prospectus and who has Bid for an amount of at least ₹ 100 million
Anchor Investor Pay-in Date With respect to Anchor Investor(s), the Anchor Investor Bidding Date, and in the event
the Anchor Investor Allocation Price is lower than the Offer Price, not later than two
Working Days after the Bid/ Offer Closing Date
Anchor Investor Allocation
Price
The price at which Equity Shares will be allocated to the Anchor Investors in terms of
the Red Herring Prospectus and the Prospectus, which will be decided by our Company,
in consultation with the Lead Managers
Anchor Investor Application
Form
The form used by an Anchor Investor to make a Bid in the Anchor Investor Portion and
which will be considered as an application for Allotment in terms of the Red Herring
Prospectus and the Prospectus
Anchor Investor Bid/Offer
Period
One Working Day prior to the Bid/Offer Opening Date, on which Bids by Anchor
Investors shall be submitted and allocation to Anchor Investors shall be completed
Anchor Investor Offer Price The final price at which the Equity Shares will be Allotted to the Anchor Investors in
terms of the Red Herring Prospectus and the Prospectus, which price will be equal to
or higher than the Offer Price but not higher than the Cap Price.
The Anchor Investor Offer Price will be decided by our Company, in consultation with
the Lead Managers
Anchor Investor Portion Up to 60% of the QIB Portion which may be allocated by our Company, in consultation
with the Lead Managers, to the Anchor Investors on a discretionary basis in accordance
with the SEBI ICDR Regulations.
One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds,
subject to valid Bids being received from domestic Mutual Funds at or above the
Anchor Investor Allocation Price
Application Supported by
Blocked Amount or ASBA
An application, whether physical or electronic, used by ASBA Bidders, to make a Bid
and authorising a SCSB to block the Bid Amount in the ASBA Account and will include
amounts blocked by SCSB upon acceptance of UPI Mandate Request by RIBs using
the UPI
ASBA Account A bank account maintained by ASBA Bidder with an SCSB for blocking the Bid
Amount mentioned in the ASBA Form and will include a bank account of RIBs linked
with UPI
ASBA Bid A Bid made by an ASBA Bidder
ASBA Bidders All Bidders except Anchor Investors
ASBA Form An application form, whether physical or electronic, used by ASBA Bidders to submit
Bids, which will be considered as the application for Allotment in terms of the Red
Herring Prospectus and the Prospectus
Banker(s) to the Offer Escrow Collection Bank, Refund Bank, Public Offer Bank and Sponsor Bank, as the
case may be
Basis of Allotment The basis on which Equity Shares will be Allotted to successful Bidders under the
Offer. For further details, please see the section entitled “Offer Procedure” on page 350
Bid An indication to make an offer during the Bid/Offer Period by a Bidder pursuant to
submission of the ASBA Form, or during the Anchor Investor Bid/Offer Period by the
Anchor Investor, pursuant to submission of the Anchor Investor Application Form, to
subscribe to or purchase the Equity Shares at a price within the Price Band, including
3
Term Description
all revisions and modifications thereto as permitted under the SEBI ICDR Regulations
and in terms of the Red Herring Prospectus and the Bid cum Application form.
The term “Bidding” shall be construed accordingly
Bid/Offer Closing Date Except in relation to any Bids received from the Anchor Investors, the date after which
the Designated Intermediaries will not accept any Bids, being [●].
Our Company, in consultation with the Lead Managers, may consider closing the
Bid/Offer Period for QIBs one Working Day prior to the Bid/Offer Closing Date in
accordance with the SEBI ICDR Regulations
Bid/Offer Opening Date Except in relation to any Bids received from the Anchor Investors, the date on which
the Designated Intermediaries shall start accepting Bids, being [●]
Bid/Offer Period Except in relation to Anchor Investors, the period between the Bid/Offer Opening Date
and the Bid/Offer Closing Date, inclusive of both days, during which Bidders can
submit their Bids, including any revisions thereof.
Our Company may, in consultation with the Lead Managers, consider closing the
Bid/Offer Period for QIBs one Working Day prior to the Bid/Offer Closing Date in
accordance with the SEBI ICDR Regulations.
Bid Amount The highest value of optional Bids indicated in the Bid cum Application Form and
payable by the Bidder or blocked in the ASBA Account of the ASBA Bidders, as the
case maybe, upon submission of the Bid
Bid cum Application Form Anchor Investor Application Form or the ASBA Form, as the context requires
Bid Lot [●] Equity Shares and in multiples of [●] Equity Shares thereafter
Bidder Any prospective investor who makes a Bid pursuant to the terms of the Red Herring
Prospectus and the Bid cum Application Form and unless otherwise stated or implied,
which includes an ASBA Bidder and an Anchor Investor
Bidding Centres The centres at which the Designated Intermediaries shall accept the Bid cum
Application Forms, being the Designated Branches for SCSBs, Specified Locations for
the Syndicate, Broker Centres for Registered Brokers, Designated RTA Locations for
RTAs and Designated CDP Locations for CDPs
Book Building Process Book building process, as provided in Schedule XIII of the SEBI ICDR Regulations,
in terms of which the Offer is being made
Book Running Lead
Managers or BRLMs
The book running lead managers to the Offer namely, Edelweiss, IIFL and SBICAP
Broker Centres The broker centres notified by the Stock Exchanges where Bidders can submit the
ASBA Forms to a Registered Broker.
The details of such Broker Centres, along with the names and the contact details of the
Registered Brokers are available on the websites of the Stock Exchanges
(www.bseindia.com and www.nseindia.com)
Cash Escrow Agreement The cash escrow agreement to be entered into between our Company, the Promoter
Selling Shareholder, the Lead Managers, the Registrar to the Offer and the Bankers to
the Offer for, inter alia, collection of the Bid Amounts from the Anchor Investors and
where applicable, refunds of the amounts collected from the Anchor Investors, on the
terms and conditions thereof
Cap Price The higher end of the Price Band, above which the Offer Price and Anchor Investor
Offer Price will not be finalised and above which no Bids will be accepted
Client ID The client identification number maintained with one of the Depositories in relation to
demat account
Co-Book Running Lead
Manager or Co-BRLM
The co-book running lead manager to the Offer namely, IDBI
Collecting Depository
Participant or CDP
A depository participant as defined under the Depositories Act, 1996, registered with
SEBI and who is eligible to procure Bids at the Designated CDP Locations in terms of
SEBI circular number CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015
issued by SEBI
Compliance Officer Compliance officer of our Company
4
Term Description
Confirmation of Allocation
Note or CAN
A notice or intimation of allocation of the Equity Shares sent to Anchor Investors, who
have been allocated Equity Shares, after the Anchor Investor Bid/Offer Period
Cut-off Price The Offer Price finalised by our Company, in consultation with the Lead Managers.
Only Retail Individual Bidders (subject to the Bid Amount being up to ₹ 200,000) are
entitled to Bid at the Cut-off Price. QIBs (including Anchor Investors) and Non-
Institutional Bidders are not entitled to Bid at the Cut-off Price
Demographic Details Details of the Bidders including the Bidders’ address, name of the Bidders’ father or
husband, investor status, occupation and bank account details
Designated Branches Such branches of the SCSBs which shall collect the ASBA Forms, a list of which is
available on the website of SEBI at
https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmI
d=35, or at such other website as may be prescribed by SEBI from time to time
Designated CDP Locations Such locations of the CDPs where Bidders can submit the ASBA Forms.
The details of such Designated CDP Locations, along with names and contact details
of the CDPs eligible to accept ASBA Forms are available on the websites of the Stock
Exchanges (www.bseindia.com and www.nseindia.com)
Designated Date The date on which the Escrow Collection Bank(s) transfer funds from the Escrow
Account to the Public Offer Account or the Refund Account, as the case may be, and
the instructions are issued to the SCSBs (in case of RIBs using UPI mechanism,
instruction issued through the Sponsor Bank) for the transfer of amounts blocked by
the SCSBs in the ASBA Accounts to the Public Offer Account or the Refund Account,
as the case may be, after the Prospectus is filed with the RoC
Designated Intermediary
(ies)
The members of the Syndicate, sub-syndicate or agents, SCSBs (other than RIBs using
the UPI mechanism), Registered Brokers, CDPs and RTAs, who are authorised to
collect Bid cum Application Forms from the Bidders, in relation to the Offer
Designated RTA Locations Such locations of the RTAs where Bidders can submit the ASBA Forms to RTAs
The details of such Designated RTA Locations, along with names and contact details
of the RTAs eligible to accept ASBA Forms are available on the websites of the Stock
Exchanges (www.bseindia.com and www.nseindia.com)
Designated Stock Exchange [●]
Draft Red Herring
Prospectus or DRHP
This draft red herring prospectus dated April 4, 2019, issued in accordance with the
SEBI ICDR Regulations, which does not contain complete particulars of the price at
which the Equity Shares will be Allotted and the size of the Offer
Edelweiss Edelweiss Financial Services Limited
Eligible NRI NRI eligible to invest under Schedule 3 and Schedule 4 of the FEMA Regulations, from
jurisdictions outside India where it is not unlawful to make an offer or invitation under
the Offer and in relation to whom the Bid cum Application Form and the Red Herring
Prospectus will constitute an invitation to purchase the Equity Shares
Escrow Account The ‘no-lien’ and ‘non-interest bearing’ account opened with the Escrow Collection
Bank and in whose favour the Bidders (excluding the ASBA Bidders) will transfer
money through direct credit/NEFT/RTGS/NACH in respect of the Bid Amount when
submitting a Bid
Escrow Collection Bank A bank, which is a clearing member and registered with SEBI as a banker to an issue
under the SEBI BTI Regulations and with whom the Escrow Account will be opened,
in this case being, [●]
First Bidder The Bidder whose name shall be mentioned in the Bid cum Application Form or the
Revision Form and in case of joint Bids, whose name also appears as the first holder of
the beneficiary account held in joint names
Floor Price The lower end of the Price Band, subject to any revision thereto, at or above which the
Offer Price and the Anchor Investor Offer Price will be finalised and below which no
Bids will be accepted
Fresh Issue Fresh issue of up to [●] Equity Shares aggregating up to ₹ 51,500 million by our
Company
General Information
Document or GID
The General Information Document for investing in public issues, prepared and issued
in accordance with SEBI circular number CIR/CFD/DIL/12/2013 dated October 23,
5
Term Description
2013 notified by SEBI and certain other amendments to applicable laws and updated
pursuant to SEBI circular CIR/CFD/POLICY CELL/11/2015 dated November 10,
2015, SEBI circular CIF/CFD/DIL/1/2016 dated January 1, 2016, SEBI circular
SEBI/HO/CFD/DIL/CIR/P/2016/26 and SEBI circular
SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 1, 2018, notified by SEBI.
Gross Proceeds Proceeds from the Fresh Issue
IDBI IDBI Capital Markets & Securities Limited
IIFL IIFL Holdings Limited
Lead Managers Book Running Lead Managers and Co-Book Running Lead Manager
Maximum RIB Allottees The maximum number of RIBs who can be allotted the minimum Bid Lot. This is
computed by dividing the total number of Equity Shares available for Allotment to RIBs
by the minimum Bid Lot
Monitoring Agency [●]
Monitoring Agency
Agreement
The agreement to be entered into between our Company and the Monitoring Agency
Mutual Fund Portion 5% of the Net QIB Portion or [●] Equity Shares which shall be available for allocation
to Mutual Funds only on a proportionate basis
Mutual Funds Mutual funds registered with SEBI under the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996
Net Proceeds Proceeds from the Fresh Issue less our Company’s share of the Offer Expenses.
For further details, please see the section entitled “Objects of the Offer” on page 69
Net QIB Portion The portion of the QIB Portion less the number of Equity Shares Allotted to the Anchor
Investors
Non-Institutional Bidders or
NIIs
All Bidders that are not QIBs or Retail Individual Bidders and who have Bid for Equity
Shares, for an amount of more than ₹ 200,000 (but not including NRIs other than
Eligible NRIs)
Non-Institutional Portion The portion of the Offer being not less than 15% of the Offer comprising [●] Equity
Shares which shall be available for allocation on a proportionate basis to Non-
Institutional Bidders, subject to valid Bids being received at or above the Offer Price
Non-Resident A person resident outside India, as defined under FEMA
Non-Resident Indians A non-resident Indian as defined under the FEMA Regulations
Offer The initial public offer of up to [●] Equity Shares of face value of ₹ 10 each for cash at
a price of ₹ [●] each (including a share premium of ₹ [●] per Equity Share), aggregating
up to ₹ 54,500 million, comprising a Fresh Issue of up to [●] Equity Shares aggregating
up to ₹ 51,500 million and an Offer for Sale of up to [●] Equity Shares by the Promoter
Selling Shareholder aggregating up to ₹ 3,000 million
Offer Agreement The agreement dated April 4, 2019 entered into between our Company, the Promoter
Selling Shareholder and the Lead Managers, pursuant to which certain arrangements
are agreed to in relation to the Offer
Offer for Sale Offer for sale of up to [●] Equity Shares by the Promoter Selling Shareholder
aggregating up to ₹ 3,000 million
Offer Price The final price at which Equity Shares will be Allotted in terms of the Red Herring
Prospectus. Equity Shares will be Allotted to Anchor Investors at the Anchor Investor
Offer Price in terms of the Red Herring Prospectus.
The Offer Price will be decided by our Company in consultation with the Lead
Managers on the Pricing Date in accordance with the Book Building Process and the
Red Herring Prospectus
Offer Proceeds The proceeds of the Offer that will be available to our Company and the Promoter
Selling Shareholder.
For further details on the use of Offer Proceeds from the Fresh Issue, please see the
section entitled “Objects of the Offer” on page 69
Offered Shares Up to [●] Equity Shares aggregating to ₹ 3,000 million offered by the Promoter Selling
Shareholder in the Offer for Sale
Price Band The price band of a minimum price of ₹ [●] per Equity Share (Floor Price) and the
maximum price of ₹ [●] per Equity Share (Cap Price) including revisions thereof.
6
Term Description
The Price Band and the minimum Bid Lot for the Offer will be decided by our
Company, in consultation with the Lead Managers and will be advertised at least two
Working Days prior to the Bid/Offer Opening Date, in (i) [●] editions of [●] (a widely
circulated English national daily newspaper), and (ii) [●] edition of [●] (a widely
circulated Hindi national daily newspaper, Hindi also being the regional language of
Uttar Pradesh, where the Registered Office is located)
Pricing Date The date on which our Company, in consultation with the Lead Managers, will finalise
the Offer Price
Prospectus The prospectus to be filed with the RoC on or after the Pricing Date in accordance with
Section 26 of the Companies Act, 2013 and the SEBI ICDR Regulations containing,
inter alia, the Offer Price that is determined at the end of the Book Building Process,
the size of the Offer and certain other information including any addenda or corrigenda
thereto
Public Offer Account The ‘No-lien’ and ‘non-interest bearing’ account opened, in accordance with Section
40(3) of the Companies Act, 2013, with the Public Offer Bank to receive monies from
the Escrow Account and the ASBA Accounts on the Designated Date
Public Offer Bank The bank(s) with whom the Public Offer Account for collection of Bid Amounts from
Escrow Accounts and ASBA Accounts will be opened, in this case being [●]
QIB Portion The portion of the Offer (including the Anchor Investor Portion) being not less than
50% of the Offer comprising [●] Equity Shares which shall be allotted to QIBs
(including Anchor Investors), subject to valid Bids being received at or above the Offer
Price.
QIBs, QIB Bidders or
Qualified Institutional
Buyers
The qualified institutional buyers as defined under Regulation 2(1)(ss) of the SEBI
ICDR Regulations
Red Herring Prospectus or
RHP
The red herring prospectus to be issued by our Company in accordance with Section 32
of the Companies Act, 2013, and the provisions of the SEBI ICDR Regulations, which
will not have complete particulars of the price at which the Equity Shares will be offered
and the size of the Offer, including any addenda or corrigenda thereto.
The Red Herring Prospectus will be registered with the RoC at least three days before
the Bid/Offer Opening Date and will become the Prospectus upon filing with the RoC
on or after the Pricing Date
Refund Account(s) The ‘No-lien’ and ‘non-interest bearing’ account opened with the Refund Bank, from
which refunds, if any, of the whole or part, of the Bid Amount to the Anchor Investors
shall be made
Refund Bank(s) [●]
Registered Brokers The stock brokers registered with the stock exchanges having nationwide terminals,
other than the members of the Syndicate and eligible to procure Bids in terms of SEBI
circular number CIR/CFD/14/2012 dated October 4, 2012 issued by SEBI
Registrar to the Offer or
Registrar
Link Intime India Private Limited
Registrar Agreement The agreement dated April 3, 2019 entered into between our Company, the Promoter
Selling Shareholder and the Registrar to the Offer, in relation to the responsibilities and
obligations of the Registrar to the Offer pertaining to the Offer
Retail Individual Bidder(s),
Retail Individual
Investor(s), RII(s) or RIB(s)
Resident Indian individual Bidders submitting Bids, who have Bid for the Equity
Shares for an amount not more than ₹ 200,000 in any of the bidding options in the Offer
(including HUFs applying through their Karta) and Eligible NRIs
Retail Portion The portion of the Offer being not less than 35% of the Offer comprising [●] Equity
Shares, which shall be available for allocation to Retail Individual Bidders in
accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or
above the Offer Price
Revision Form The form used by Bidders to modify the quantity of the Equity Shares or the Bid
Amount in any of their Bid cum Application Forms or any previous Revision Form(s),
as applicable.
7
Term Description
QIB Bidders and Non-Institutional Bidders are not allowed to withdraw or lower their
Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage. Retail
Individual Bidders can revise their Bids during the Bid/Offer Period and withdraw their
Bids until Bid/Offer Closing Date
RTAs or Registrar and Share
Transfer Agents
The registrar and share transfer agents registered with SEBI and eligible to procure Bids
at the Designated RTA Locations in terms of SEBI circular number
CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by SEBI and
available on the website of the Stock Exchanges at www.nseindia.com and
www.bseindia.com
SBICAP SBI Capital Markets Limited
Self Certified Syndicate
Bank(s) or SCSB(s)
The banks registered with SEBI, offering services (i) in relation to ASBA (other than
through UPI mechanism), a list of which is available on the website of SEBI at
https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmI
d=34 or
https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmI
d=35, as applicable, or such other website as updated from time to time, and (ii) in
relation to ASBA (through UPI mechanism), a list of which is available on the website
of SEBI at
https://sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=40
or such other website as updated from time to time
Share Escrow Agent The share escrow agent appointed pursuant to the Share Escrow Agreement namely,
[●]
Share Escrow Agreement The share escrow agreement to be entered into between our Company, the Promoter
Selling Shareholder and the Share Escrow Agent in connection with the transfer of
Equity Shares under the Offer by the Promoter Selling Shareholder and credit of such
Equity Shares to the demat accounts of the Allottees
Specified Locations The Bidding centres where the Syndicate shall accept Bid cum Application Forms, a
list of which is available on the website of SEBI (www.sebi.gov.in), and updated from
time to time
Sponsor Bank [•], being a Banker to the Offer registered with SEBI, appointed by our Company to act
as a conduit between the Stock Exchanges and NPCI in order to push the mandate
collect requests and / or payment instructions of the RIBs using the UPI
Syndicate or members of the
Syndicate
The Lead Managers and the Syndicate Members
Syndicate Agreement The syndicate agreement to be entered into between our Company, the Promoter Selling
Shareholder and the members of the Syndicate in relation to collection of Bid cum
Application Forms by the Syndicate
Syndicate Members The intermediaries registered with SEBI who are permitted to carry out activities as an
underwriter, namely [●]
Underwriters Lead Managers and Syndicate Members
Underwriting Agreement The underwriting agreement to be entered into between our Company, the Promoter
Selling Shareholder and the Underwriters, on or after the Pricing Date, but prior to filing
the Prospectus with the RoC
UPI or UPI mechanism Unified payments interface which is an instant payment mechanism, developed by
NPCI
UPI ID ID created on the UPI for single-window mobile payment system developed by the
NPCI
UPI Mandate Request A request (intimating the RIB by way of a notification on the UPI application and by
way of a SMS for directing the RIB to such UPI mobile application) to the RIB initiated
by the Sponsor Bank to authorise blocking of funds on the UPI application equivalent
to Bid Amount and subsequent debit of funds in case of Allotment
Wilful Defaulter A company or person, as the case may be, categorised as a wilful defaulter by any bank
or financial institution or consortium thereof, in accordance with the guidelines on
wilful defaulters issued by the RBI and includes any company whose director or
promoter is categorised as such
Working Day All days other than second and fourth Saturday of the month, Sunday or a public
holiday, on which commercial banks in Mumbai are open for business; provided
however, with reference to (a) announcement of Price Band; and (b) Bid/Offer Period,
8
Term Description
the term Working Day shall mean all days, excluding Saturdays, Sundays and public
holidays, on which commercial banks in Mumbai are open for business; and (c) the
time period between the Bid/Offer Closing Date and the listing of the Equity Shares on
the Stock Exchanges. “Working Day” shall mean all trading days of the Stock
Exchanges, excluding Sundays and bank holidays, as per the SEBI circular number
SEBI/HO/CFD/DIL/CIR/P/2016/26 dated January 21, 2016 and the SEBI circular
number SEBI/HO/CFD/DIL2/CIR/P/2018/138 dated November 1, 2018
Technical, Industry Related Terms or Abbreviations
Term Description
APTEL Appellate Tribunal for Electricity, New Delhi
DISCOM Distribution company
FSA Fuel Supply Agreement
PAF Plant Availability Factor
PLF Plant Load Factor
PPA Power Purchase Agreement
UPERC Uttar Pradesh Electricity Regulatory Commission
Conventional and General Terms or Abbreviations
Term Description
₹, Rs., Rupees or INR Indian Rupees
AGM Annual general meeting
AIF Alternative Investment Fund as defined in and registered with SEBI under the SEBI
AIF Regulations
AS or Accounting Standards Accounting standards issued by the ICAI
Bn or bn Billion
BSE BSE Limited
Category I AIF AIFs who are registered as “Category I Alternative Investment Funds” under the SEBI
AIF Regulations
Category II AIF AIFs who are registered as “Category II Alternative Investment Funds” under the SEBI
AIF Regulations
Category III AIF AIFs who are registered as “Category III Alternative Investment Funds” under the
SEBI AIF Regulations
Category I FPIs FPIs who are registered as “Category I foreign portfolio investors” under the SEBI FPI
Regulations
Category II FPIs FPIs who are registered as “Category II foreign portfolio investors” under the SEBI
FPI Regulations
Category III FPIs FPIs who are registered as “Category III foreign portfolio investors” under the SEBI
FPI Regulations
CAGR Compounded Annual Growth Rate
CDSL Central Depository Services (India) Limited
CIN Corporate Identity Number
Civil Code The Code of Civil Procedure, 1908
CLB Company Law Board
Companies Act Companies Act, 1956 and Companies Act, 2013, as applicable
Companies Act, 1956 Companies Act, 1956 (without reference to the provisions thereof that have ceased to
have effect upon notification of the sections of the Companies Act, 2013) along with
the relevant rules made thereunder
Companies Act, 2013 Companies Act, 2013, to the extent in force pursuant to the notification of the sections,
along with the relevant rules made thereunder
Consolidated FDI Policy Consolidated Foreign Direct Investment Policy notified by the DPIIT under D/o IPP F.
No. 5(1)/2017-FC-1 dated the August 28, 2017, effective from August 28, 2017
Depositories NSDL and CDSL
Depositories Act The Depositories Act, 1996
DIN Director Identification Number
DP ID Depository Participant’s Identification
9
Term Description
DP or Depository
Participant A depository participant as defined under the Depositories Act
DPIIT Department for Promotion of Industry and Internal Trade, Ministry of Commerce and
Industry, Government of India (formerly known as Department of Industrial Policy and
Promotion)
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortisation
EGM Extraordinary General Meeting
EPS Earnings Per Share
FDI Foreign Direct Investment
FEMA Foreign Exchange Management Act, 1999, read with rules and regulations thereunder
FEMA Regulations FEMA (Transfer or Issue of Security by a Person Resident Outside India) Regulations,
2017
Financial Year, Fiscal,
Fiscal Year or FY
Unless stated otherwise, the period of 12 months ending March 31 of that particular
year
FIR First information report
FPI Foreign Portfolio Investors as defined under the SEBI FPI Regulations
FVCI Foreign Venture Capital Investors as defined and registered under the SEBI FVCI
Regulations
GAAR General anti-avoidance rules
Gazette Gazette of India
GDP Gross Domestic Product
GoI or Government Government of India
GST Goods and services tax
IBC Insolvency and Bankruptcy Code, 2016
ICAI The Institute of Chartered Accountants of India
IFRS International Financial Reporting Standards
Income Tax Act The Income-tax Act, 1961
Ind AS Indian Accounting Standards notified under the Companies (Indian Accounting
Standards) Rules, 2015
India Republic of India
Indian GAAP Generally Accepted Accounting Principles in India
IPO Initial public offering
IRDAI Insurance Regulatory and Development Authority of India
IST Indian Standard Time
IT Information Technology
KYC Know Your Customer
MCA Ministry of Corporate Affairs, Government of India
Mn or mn Million
NACH National Automated Clearing House
NAV Net Asset Value
NEFT National Electronic Fund Transfer
Negotiable Instruments Act Negotiable Instruments Act, 1881
NPCI National Payments Corporation of India
NR Non-Resident
NRI A person resident outside India, who is a citizen of India or a person of Indian origin,
and shall have the meaning ascribed to such term in the Foreign Exchange Management
(Deposit) Regulations, 2000
NSDL National Securities Depository Limited
NSE National Stock Exchange of India Limited
OCB or Overseas Corporate
Body
A company, partnership, society or other corporate body owned directly or indirectly
to the extent of at least 60% by NRIs including overseas trusts, in which not less than
60% of beneficial interest is irrevocably held by NRIs directly or indirectly and which
was in existence on October 3, 2003 and immediately before such date had taken
benefits under the general permission granted to OCBs under FEMA. OCBs are not
allowed to invest in the Offer
p.a. Per annum
10
Term Description
P/E Ratio Price to Earnings Ratio
PAN Permanent Account Number
PAT Profit After Tax
RBI Reserve Bank of India
RBI Act Reserve Bank of India Act, 1934
RTGS Real Time Gross Settlement
SCRA Securities Contracts (Regulation) Act, 1956
SCRR Securities Contracts (Regulation) Rules, 1957
SEBI Securities and Exchange Board of India constituted under the SEBI Act
SEBI Act Securities and Exchange Board of India Act, 1992
SEBI AIF Regulations Securities and Exchange Board of India (Alternative Investments Funds) Regulations,
2012
SEBI BTI Regulations Securities and Exchange Board of India (Bankers to an Issue) Regulations, 1994
SEBI FPI Regulations Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations,
2014
SEBI FVCI Regulations Securities and Exchange Board of India (Foreign Venture Capital Investors)
Regulations, 2000
SEBI ICDR Regulations Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018
SEBI Listing Regulations Securities and Exchange Board of India (Listing Obligations And Disclosure
Requirements) Regulations, 2015
SEBI Merchant Bankers
Regulations
Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992
SEBI Takeover Regulations Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011
SEBI VCF Regulations Securities and Exchange Board of India (Venture Capital Fund) Regulations, 1996
Securities Act U.S. Securities Act, 1933
Stamp Act The Indian Stamp Act, 1899
State Government The government of a state in India
Stock Exchanges BSE and NSE
STT Securities Transaction Tax
Systemically Important
NBFC
Systemically important non-banking financial company as defined under Regulation
2(1)(iii) of the SEBI ICDR Regulations
TAN Tax deduction account number
U.S., USA or United States United States of America
U.S. QIBs “Qualified institutional buyers” as defined in Rule 144A under the Securities Act
USD or US$ United States Dollars
VCFs Venture Capital Funds as defined in and registered with SEBI under the SEBI VCF
Regulations
11
CERTAIN CONVENTIONS, PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA
Certain Conventions
All references to “India” contained in this Draft Red Herring Prospectus are to the Republic of India and its territories and
possessions and all references herein to the “Government”, “Indian Government”, “GoI”, “Central Government” or the
“State Government” are to the Government of India, central or state, as applicable. All references to the “U.S.”, “US”,
“U.S.A” or “United States” are to the United States of America and its territories and possessions.
Unless otherwise specified, any time mentioned in this Draft Red Herring Prospectus is in Indian Standard Time (“IST”).
Unless indicated otherwise, all references to a year in this Draft Red Herring Prospectus are to a calendar year.
Unless stated otherwise, all references to page numbers in this Draft Red Herring Prospectus are to the page numbers of
this Draft Red Herring Prospectus.
Financial Data
Unless stated otherwise, the financial information and financial ratios in this Draft Red Herring Prospectus have been
derived from our Restated Consolidated Financial Information. Certain other financial information pertaining to our Group
Companies is derived from their respective audited financial statements, as may be available, other than in case of LPGCL,
where financial information is derived from the LPGCL Restated Financial Information. For further information, please
see the section entitled “Financial Information” on page 161.
Our Company’s financial year commences on April 1 and ends on March 31 of the next year. Accordingly, all references
to a particular financial year, unless stated otherwise, are to the 12 month period ended on March 31 of that year.
The restated consolidated financial information of our Company and its Associate for the nine months ended December
31, 2018 and for Fiscals 2018, 2017 and 2016, which comprise restated consolidated summary statement of assets and
liabilities, the restated consolidated summary statement of profit and loss, the restated consolidated summary statement of
cash flow and restated consolidated summary statement of changes in equity together with the annexures and notes thereto
and the examination report thereon, as compiled from the Indian Accounting Standard (Ind AS) financial statements for
respective period/year and in accordance with the requirements provided under the provisions of the Companies Act, SEBI
ICDR Regulations and the Guidance Note on “Reports in Company Prospectuses (Revised 2019)” issued by ICAI.
The restated financial information of LPGCL for the nine months ended December 31, 2018 and the Fiscals 2018, 2017
and 2016, which comprise the restated summary statement of assets and liabilities, the restated summary statement of
profit and loss and the restated summary statement of cash flow, restated summary statement of changes in equity together
with the annexures and notes thereto and the examination report thereon, as compiled from the Indian Accounting Standard
(Ind AS) financial statements for respective period/year and in accordance with the requirements provided under the
provisions of the Companies Act, SEBI ICDR Regulations and the Guidance Note on “Reports in Company prospectuses
(Revised 2019)” issued by the ICAI.
The unaudited restated proforma consolidated financial information of our Company reflecting the proposed acquisition
of LPGCL i.e. conversion of associate into wholly owned subsidiary, which comprise the unaudited restated proforma
consolidated balance sheets as December 31, 2018, and the restated proforma consolidated statement of profit and loss for
the nine months ended December 31, 2018 and the Fiscal 2018, together with the notes thereto. The unaudited pro forma
consolidated financial information relating to the proposed acquisition of LPGCL is presented for illustrative purposes
only and does not purport to represent what our actual income statement and balance sheet would have been, had the
events which were the subject of the adjustments occurred on the relevant dates, nor does it purport to project our results
of operations or financial position for any future period or date. The unaudited pro forma consolidated financial
information relating to the proposed acquisition of LPGCL does not include all of the information required for consolidated
financial statements under Ind AS and should be read in conjunction with the restated consolidated financial information
of our Company and its Associate included elsewhere in this Draft Red Herring Prospectus. Further, the unaudited pro
forma consolidated financial information relating to the proposed acquisition of LPGCL was not prepared in connection
with an offering registered with the SEC under the Securities Act and consequently does not comply with SEC's rules on
presentation of pro forma consolidated financial information.
There are significant differences between Ind AS, Indian GAAP, U.S. GAAP and IFRS. Our Company does not provide
reconciliation of its financial information to IFRS or U.S. GAAP. Our Company has not attempted to explain those
differences or quantify their impact on the financial data included in this Draft Red Herring Prospectus and it is urged that
you consult your own advisors regarding such differences and their impact on our financial data. Accordingly, the degree
to which the financial information included in this Draft Red Herring Prospectus will provide meaningful information is
12
entirely dependent on the reader’s level of familiarity with Indian accounting policies and practices, the Companies Act,
Ind AS, the Indian GAAP and the SEBI ICDR Regulations. Any reliance by persons not familiar with Indian accounting
policies and practices on the financial disclosures presented in this Draft Red Herring Prospectus should, accordingly, be
limited.
Unless the context otherwise indicates, any percentage amounts, relating to the financial information of our Company in
the sections entitled “Risk Factors”, “Our Business” and “Management’s Discussion and Analysis of Financial
Conditional and Results of Operations” on pages 21, 109 and 259, respectively, and elsewhere in this Draft Red Herring
Prospectus have been calculated on the basis of our Restated Consolidated Financial Information.
Currency and Units of Presentation
All references to:
“Rupees” or “₹” or “INR” or “Rs.” are to Indian Rupee, the official currency of the Republic of India; and
“USD” or “US$” are to United States Dollar, the official currency of the United States.
Our Company has presented certain numerical information in this Draft Red Herring Prospectus in “million” units. One
million represents 1,000,000 and one billion represents 1,000,000,000.
In this Draft Red Herring Prospectus, any discrepancies in any table between the total and the sums of the amounts listed
are due to rounding off. All figures derived from our Restated Consolidated Financial Information in decimals have been
rounded off to the second decimal and all percentage figures have been rounded off to two decimal places. However,
where any figures may have been sourced from third-party industry sources, such figures may be rounded off to such
number of decimal places as provided in such respective sources.
Exchange Rates
This Draft Red Herring Prospectus contains conversion of certain other currency amounts into Indian Rupees that have
been presented solely to comply with the SEBI ICDR Regulations. These conversions should not be construed as a
representation that these currency amounts could have been, or can be converted into Indian Rupees, at any particular rate.
The following table sets forth, for the periods indicated, information with respect to the exchange rate between the Rupee
and the US$ (in Rupees per US$):
(Amount in ₹, unless otherwise specified)
Currency As on March 31,
2019(1)*
As on December
31, 2018**
As on March 31,
2018(2)*
As on March 31,
2017*
As on March 31,
2016*
1 US$ 69.17 66.77 65.04 64.84 66.33 *(Source: www.fbil.org.in)
**(Source: Bloomberg)
Note: Exchange rate is rounded off to two decimal places
(1) Exchange rate as on March 29, 2019 as RBI reference rate is not available for March 31, 2019 and March 30, 2019, being a Saturday and Sunday respectively. (2) Exchange rate as on March 28, 2018, as RBI Reference Rate is not available for March 31, 2018, March 30, 2018 and March 29, 2018 being a Saturday and two public
holidays, respectively.
Industry and Market Data
Unless stated otherwise, industry and market data used in this Draft Red Herring Prospectus has been obtained or derived
from the report entitled “Outlook on power sector in India” dated April, 2019 prepared by CRISIL Research (the “CRISIL
Report”) and publicly available information as well as other industry publications and sources. The CRISIL Report has
been prepared at the request of our Company. In relation to the CRISIL Report, please see below the disclaimer specified
in their consent letter issued to our Company:
“CRISIL Research, a division of CRISIL Limited (CRISIL) has taken due care and caution in preparing this report (Report)
and Material based on the Information obtained by CRISIL from sources which it considers reliable (Data). However,
CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any
errors or omissions or for the results obtained from the use of Data / Report/ Materials. This Report is not a
recommendation to invest / disinvest in any entity covered in the Report and no part of this Report should be construed as
an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation.
CRISIL especially states that it has no liability whatsoever to the subscribers / users / transmitters/ distributors of this
Report. Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL providing or
intending to provide any services in jurisdictions where CRISIL does not have the necessary permission and/or registration
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to carry out its business activities in this regard. Bajaj Energy Limited will be responsible for ensuring compliances and
consequences of non-compliances for use of the Report or part thereof outside India. CRISIL Research operates
independently of, and does not have access to information obtained by CRISIL’s Ratings Division / CRISIL Risk and
Infrastructure Solutions Ltd (CRIS), which may, in their regular operations, obtain information of a confidential nature.
The views expressed in this Report/ Materials are that of CRISIL Research and not of CRISIL’s Ratings Division / CRIS.
No part of this Report may be published/reproduced in any form without CRISIL’s prior written approval.”
Industry publications generally state that the information contained in such publications has been obtained from publicly
available documents from various sources believed to be reliable but their accuracy and completeness are not guaranteed
and their reliability cannot be assured. Accordingly, no investment decisions should be based on such information. We
believe the industry and market data used in this Draft Red Herring Prospectus is reliable, however, it has not been
independently verified by our Company, the Promoter Selling Shareholder or the Lead Managers or any of their affiliates
or advisors. The data used in these sources may have been re-classified by us for the purposes of presentation. Data from
these sources may also not be comparable. For details in relation to the risks involving the CRISIL Report, please see the
section entitled “Risk Factors” on page 21.
The extent to which the market and industry data used in this Draft Red Herring Prospectus is meaningful depends on the
reader’s familiarity with and understanding of the methodologies used in compiling such data. There are no standard data
gathering methodologies in the industry in which business of our Company is conducted, and methodologies and
assumptions may vary widely among different industry sources.
In accordance with the SEBI ICDR Regulations, the section entitled “Basis for the Offer Price” on page 74 includes
information relating to our peer group companies. Such information has been derived from publicly available sources, and
neither we, the Promoter Selling Shareholder nor the Lead Managers have independently verified such information.
Accordingly, no investment decision should be made solely on the basis of such information. Such data involves risks,
uncertainties and numerous assumptions and is subject to change based on various factors, including those disclosed in
the section entitled “Risk Factors” on page 21.
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FORWARD-LOOKING STATEMENTS
This Draft Red Herring Prospectus contains certain “forward-looking statements”. These forward-looking statements
generally can be identified by words or phrases such as “aim”, “anticipate”, “believe”, “expect”, “estimate”, “intend”,
“objective”, “plan”, “propose”, “project”, “will”, “will continue”, “will pursue” or other words or phrases of similar
import. Similarly, statements that describe our strategies, objectives, plans or goals are also forward-looking statements.
All forward-looking statements are subject to risks, uncertainties, expectations and assumptions about us that could cause
actual results to differ materially from those contemplated by the relevant forward-looking statement.
Actual results may differ materially from those suggested by forward-looking statements due to risks or uncertainties
associated with expectations relating to and including, regulatory changes pertaining to the industries in India in which we
operate and our ability to respond to them, our ability to successfully implement our strategy, our growth and expansion,
technological changes, our exposure to market risks, general economic and political conditions in India which have an
impact on its business activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated
turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial
markets in India and globally, changes in domestic laws, regulations and taxes and changes in competition in the industries
in which we operate.
Certain important factors that could cause actual results to differ materially from our expectations include, but are not
limited to, the following:
We rely on a single customer and any inability or failure by the customer to meet its payment commitments could have an adverse effect on our business, financial condition, cash flows and results of operations
Our Associate is currently involved in disputes with UPPCL relating to payment of tariffs
There are qualifications in the audit report of LPGCL's financial statements for Fiscal 2018 and consolidated financial statements of the Company for Fiscal 2018, and there are emphasis of matter in the audit reports for each of LPGCL
and consolidated financial statements for BEL for the nine months ended December 31, 2018, LPGCL Restated
Financial Information and the Restated Consolidated Financial Information and the Unaudited Restated Proforma
Financial Information for nine months ended December 31, 2018 in respect of LPGCL's ongoing dispute with UPPCL
We are subject to contractual risks under our PPAs with our power purchasers which are government entities
We have in the past not been, and continue not to be, compliant with certain financial and other covenants, in relation to certain loan agreements
Operation of our thermal power generation business has significant coal requirements and we face fuel supply risks, despite having entered into long-term FSAs
Our Company’s proposed acquisition of the remaining approximate 79.31% interest of our Associate is subject to risks
We are subject to operational risks which may disrupt our power plant operations and any reduction in dispatched output or the inability of our power plants to generate or deliver power as a result of such disruptions may adversely
affect our income
In the past, we have incurred additional costs in order to complete some of our projects and there can be no assurance that we will be able to complete any future projects in accordance with the anticipated schedule or without incurring
cost overruns
Operations in our coal-based power generation business carry inherent risks of damage to the environment
For details regarding factors that could cause actual results to differ from expectations, please see the sections entitled “Risk
Factors”, “Our Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
on pages 21, 109 and 259, respectively. By their nature, certain market risk disclosures are only estimates and could be
materially different from what actually occurs in the future. As a result, actual gains or losses could materially differ from
those that have been estimated.
There can be no assurance to Bidders that the expectations reflected in these forward-looking statements will prove to be
correct. Given these uncertainties, Bidders are cautioned not to place undue reliance on such forward-looking statements
and not to regard such statements to be a guarantee of our future performance.
Forward-looking statements reflect current views as of the date of this Draft Red Herring Prospectus and are not a
guarantee of future performance. These statements are based on our management’s beliefs and assumptions, which in turn
are based on currently available information. Although we believe the assumptions upon which these forward-looking
statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking
statements based on these assumptions could be incorrect. Neither our Company, our Directors, the Promoter Selling
Shareholder, the Syndicate nor any of their respective affiliates have any obligation to update or otherwise revise any
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statements reflecting circumstances arising after the date hereof or to reflect the occurrence of underlying events, even if
the underlying assumptions do not come to fruition. In accordance with the SEBI ICDR Regulations, our Company, the
Promoter Selling Shareholder and the Lead Managers will ensure that the Bidders in India are informed of material
developments until the time of the grant of listing and trading permission by the Stock Exchanges for the Offer.
In accordance with requirements of SEBI and as prescribed under applicable law, the Promoter Selling Shareholder shall
ensure that the Bidders in India are informed of material developments, in relation to statements and undertakings
specifically undertaken or confirmed by the Promoter Selling Shareholder in relation to itself and the Offered Shares in
the Red Herring Prospectus until the time of the grant of listing and trading permission by the Stock Exchanges. Only
statements and undertakings which are specifically confirmed or undertaken by the Promoter Selling Shareholder, as the
case may be, in this Draft Red Herring Prospectus shall be deemed to be statements and undertakings made by the Promoter
Selling Shareholder.
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SUMMARY OF THE DRAFT RED HERRING PROSPECTUS
The following is a general summary of the terms of the Offer. This summary should be read in conjunction with, and is
qualified in its entirety by, the more detailed information appearing elsewhere in this Draft Red Herring Prospectus,
including the sections entitled “Risk Factors”, “Objects of the Offer”, “Our Business”, “Offer Procedure” and
“Description of Equity Shares and Terms of Articles of Association” on pages 21, 69, 109, 350 and 363 respectively.
Summary of Business
We are one of the largest private sector thermal generation companies in Uttar Pradesh. We have a track record of
developing, financing and operating thermal power plants in India. We have a total gross installed capacity of 2,430 MW,
comprising 450 MW from five operational plants of 90 MW each, owned and managed by our Company and 1,980 MW
from the power plant owned and managed by LPGCL. The aggregate installed capacity for the BEL Power Plants and the
LPGCL Power Plant is fully contracted for under the long-term PPAs entered into with certain state government-owned
procurers through UPPCL.
Summary of Industry
An overall increase in power consumption is expected to be driven by establishment of upcoming growth centres in Uttar
Pradesh. With the completion of 100% village electrification, the power demand would also rise. Coal-based capacities are
expected to account for 81% of total conventional power generation capacity additions in Fiscal 2019 to Fiscal 2023.
Approximately 37 GW of conventional power generation capacity is expected to be added by Fiscal 2023. Out of the 37
GW of conventional power generation capacity, it is estimated that 30 GW shall be coal-based capacity and the remaining
shall be hydro-based and nuclear power-based capacity.
Promoters
Our Promoters are Bajaj Power Ventures Private Limited, Shishir Bajaj, Minakshi Bajaj, Kushagra Bajaj and Apoorva
Bajaj.
Offer Size
Offer Up to [●] Equity Shares aggregating up to ₹ 54,500 million
of which
Fresh Issue(1) Up to [●] Equity Shares aggregating up to ₹ 51,500 million
Offer for Sale(2) Up to [●] Equity Shares aggregating up to ₹ 3,000 million by
the Promoter Selling Shareholder (1) The Fresh Issue has been authorized by a resolution of our Board dated March 22, 2019 and a special resolution of our Shareholders, dated March
25, 2019. (2) The Offer for Sale has been authorized by the Promoter Selling Shareholder pursuant to its board resolution dated March 22, 2019. The Equity
Shares being offered by the Promoter Selling Shareholder have been held for a period of at least one year immediately preceding the date of this Draft Red Herring Prospectus with SEBI, or are otherwise eligible for being offered for sale pursuant to the Offer in terms of the SEBI ICDR
Regulations. For details of authorizations received for the Offer for Sale, please see the section entitled “Other Regulatory and Statutory
Disclosures” on page 330.
Objects of the Offer
The Net Proceeds are proposed to be used in accordance with the details provided in the following table:
Particulars Amount (In ₹ million)
Purchase of 69,936,900 LPGCL Shares from BPVPL and from BHSL 49,720
General corporate purposes* [●]
Total [●]** * The amount utilised for general corporate purposes shall not exceed 25% of the Net Proceeds. Further such amount shall be determined on basis
of the Offer Price and updated in the Prospectus prior to filing with the RoC ** To be determined on finalization of the Offer Price and updated in the Prospectus prior to the filing with the RoC.
Pre-Offer Shareholding of Promoters, Promoter Group and the Promoter Selling Shareholder
S.
No.
Category of Shareholders No. of Equity Shares % of total paid up Equity Share
capital
1. Promoters
BPVPL (Promoter Selling Shareholder) 452,925,000(1) 100.00(1)
Total 452,925,000 100.00
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S.
No.
Category of Shareholders No. of Equity Shares % of total paid up Equity Share
capital
2. Promoter Group Nil Nil (1) This includes sixty six Equity Shares held by six nominees of BPVPL.
Summary of Restated Consolidated Financial Information
(in ₹ million other than share data)
Particulars Nine months
ended December
31, 2018
Fiscal
2018 2017 2016
Equity Share capital 411.75 411.75 411.75 411.75
Net worth 12,935.20 12,543.46 12,579.30 11,503.64
Revenue (total income) 7,220.51 8,976.25 14,058.76 14,070.99
Profit after tax 359.40 416.82 882.50 1,028.35
Share of profit/ (loss) of associate (net) 36.24 (450.77) 194.62 0
Profit / (loss) for the period / year 395.64 (33.95) 1,077.12 1,028.35
Earnings per share (basic and diluted)
- Basic 9.61 (0.82) 26.16 24.98
- Diluted 9.61 (0.82) 26.16 24.98
Net asset value per equity share 314.15 304.64 305.51 279.38
Total borrowings (as per balance sheet) 19,263.51 18,960.45 20,579.51 21,825.30
Qualifications of the Auditors
The Restated Consolidated Financial Information do not contain any qualification requiring adjustments by the Joint
Statutory Auditors.
Summary of O