JSW Energy on Wednesday said that its wholly owned subsidiary, JSW Neo energy has agreed to acquire solar and wind power assets from Mytrah Energy (India) Pvt Ltd. The deal was struck at an enterprise value of approximately ₹ 10,530 crores for assets totalling 1753 megawatts (MW).
KPMG India Services LLP was the transaction advisor to the company, while Khaitan and Co. was the legal advisor.
JSW Energy’s share price has increased by 17.41% in the past five days and by a whopping 38.20% in the past month.
This will be JSW Energy’s biggest acquisition to date, however, it is subject to the approval of the Competition Commission of India (CCI) and other customary approvals. It will propel JSW Energy’s operational generation capacity by over 35% to 6,537MW from 4,784MW.
Mytrah’s portfolio includes 10 wind special purpose vehicles (SPVs) of 1,331MW and seven solar SPVs of 422MW, operating primarily in the southern, western and central parts of India. These assets have long-term power purchase agreements (PPAs) with an average remaining life of 18 years.
Sajjan-Jindal-led JSW Energy said that with 2,500MW of under-construction wind and hydro projects likely to be commissioned in phases over the next 18-24 months, its capacity would increase to 9.1GW, with the share of renewables rising to 65%. Further, it expects to achieve it with the help of its renewable-led capacity growth target of 10GW by FY25, well ahead of timelines.
The company reported strong 1QFY23 results with a 135% YoY profit growth, on the back of higher revenues. Its total revenue climbed 68% YoY (year-on-year) to ₹ 3,115 crores from ₹ 1,816 crores in the first quarter of the previous year. Further, its net profit rose to ₹ 560 crores in Q1 from ₹ 201 crores in the corresponding quarter last year.
JSW Energy said that it is well positioned to pursue growth backed by one of the strongest balance sheets in the sector and a profitable and cash-generative operating portfolio.
Written By Simran Bafna
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