JSW Energy-led arm to acquire 1,753 MW Renewable Energy portfolio worth Rs10,531 crore

10 Aug 2022 , 09:23 AM

JSW Energy Limited informed that its wholly-owned subsidiary JSW Neo Energy Limited (JSWNEL) has agreed to acquire a portfolio of 1,753 MW of Renewable Energy generation capacity from Mytrah Energy (India) Private Limited (MEIPL).

The said acquisition comprises 17 SPVs and 1 Ancillary SPV. Both the parties have signed necessary definitive agreements. However, the transaction is subject to receipt of the necessary regulatory and other customary approvals.

Upon completion of the transaction, the said 18 subsidiaries of MEIPL would become subsidiaries of JSWNEL and step-down subsidiaries of the Company.

JSW Energy is targeting to reach 10 GW capacity by FY 2025 and 20 GW capacity by FY 2030, with the share of renewable energy increasing to 85% by FY 2030.

JSW Neo Energy Limited, the company’s wholly-owned subsidiary, will acquire renewable assets under this transaction.

The transaction is expected to close on November 15, 2022, subject to the fulfillment of the Conditions Precedent outlined in the SPA.

After adjusting for net current assets – subject to net working capital and other adjustments at the time of closing – the transaction has an Enterprise Value of Rs10,531 crore.

The company further informed that the total Acquisition Portfolio consists of 10 Wind SPVs with a capacity of 1,331 MW and 7 Solar SPVs with a capacity of 422 MW (487 MWp DC) and 1 ancillary SPV.

Renewable energy projects are primarily located in India’s southern, western, and central regions, and all of them have long-term power tie-ups.

At around 9.27 AM, JSW Energy was trading at Rs317.90 up by 1.97% from its previous closing of Rs311.75 on the BSE. The scrip opened at Rs314.50.