JSW Energy Raises Rs 5,000 Crore Through Share Sale to Investors

• ByStartupStory     |    April 6, 2024

JSW Energy Limited has successfully secured Rs 5,000 crore through the sale of shares to institutional investors, a development that underscores the company’s commitment to advancing its ambitious expansion plans. The capital infusion was achieved via a qualified institutions placement (QIP), with prominent investors, including Abu Dhabi Investment Authority (ADIA), demonstrating keen interest in the offering.

The company disclosed in a regulatory filing on Friday that the QIP garnered substantial subscription, surpassing expectations by over 3.2 times. Notable global asset management firms such as GQG, Blackrock, Nomura, Wellington, UBS, and ADIA participated in the offering, marking a significant milestone for JSW Energy. This marks the first equity raise by the company since its listing in 2010, and stands as the largest primary equity raise in the Indian power sector over the past decade.

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed optimism regarding India’s economic growth momentum and its positive implications for power demand. He stated, “India’s strong investment cycle-driven economic growth momentum bodes well for power demand outlook. The strong institutional investor interest reflects their unwavering confidence in our positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives.”

Mahendra emphasized the company’s pivotal role in shaping the energy sector, setting benchmarks for industry leadership, and contributing to India’s journey towards achieving net-zero targets by 2070. JSW Energy, a subsidiary of the $23-billion JSW Group, holds a prominent position in India’s private sector power generation landscape. With diversified assets in power generation and transmission, the company has steadily expanded its capacity since commencing commercial operations in 2000.

JSW Energy’s current portfolio spans thermal, wind, hydel, and solar power generation, with ongoing projects poised to add substantial capacity to its existing infrastructure. The infusion of funds from the QIP is expected to fortify the company’s capital structure, providing financial flexibility to pursue its growth initiatives effectively.

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