JSW Group may sell stake worth $500 million in Neo Energy

31 May 2023 , 01:34 PM

JSW Group is looking to offload a minority stake in JSW Energy’s listed subsidiary JSW Neo Energy for a consideration of $500 million.

Standard Chartered Bank has been appointed by the group as the sell-side advisor for the stated transaction. Among the interested bidders is TPG’s The Rise Fund. Earlier, the fund invested $1 billion in the electric vehicle arm of Tata Motors.

The company plans to utilize the sale proceeds to expand its renewable energy footprint.

According to reports, Aditya Birla Group is looking to sell up to 49% of its stake in the group’s renewable energy business in order to raise $400 million. Standard Chartered has also been appointed as its investment banker. Meanwhile, Adani Green Energy’s board of directors is expected to meet soon to discuss a proposal to raise between $750 million and $1 billion through a stake sale.

JSW Neo Energy will house JSW Energy’s renewable energy projects, including energy storage, generation, and green hydrogen. JSW Neo Energy will house the company’s operational hydro energy projects as well as all upcoming renewable energy projects, the company previously stated.

The company said that this move will help in developing and streamlining its portfolio of renewable energy and set up a holding structure that is efficient for raising funds and unlocking shareholders’ value.

Recently, JSW Neo Energy bought 1.75 GW of renewable energy generation from Mytrah Energy for a consideration of Rs 10,530 crore.

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