JSW Energy likely to close Rs 10,530-cr Mytrah acquisition by December-end

The deal, announced in August, is JSW Energy's largest till date; will take the firm's operational generation capacity to 6.5 Gw from 4.8 Gw now, and accelerate its plans to achieve 10 Gw by FY25

Sajjan-Jindal-led JSW Energy is likely to close its Rs 10,530-crore acquisition of Mytrah Energy assets by the end of the December quarter, Prashant Jain, joint MD & CEO, said in an interaction with Business Standard.

The acquisition, which was announced in August, will take JSW Energy's operational generation capacity to 6.5 giga-watts (Gw), from 4.8 Gw currently. The deal, its largest to date, will accelerate the company's plans to achieve 10 Gw of capacity by FY25, Jain said.

"We have got the Competition Commission of India’s approval to the deal. We are currently in the process of taking various other regulatory approvals. We are expecting the transaction to be completed by the end of this (December) quarter," Jain said.

Last week, Parth Jindal, who is the son of Sajjan Jindal, was inducted into the company's board. The development acquires significance, since Jindal, 32, is expected to play a key role in JSW Energy, as it pivots towards renewable energy under subsidiary JSW Neo. The latter (JSW Neo) is also tapping opportunities in emerging areas such as lithium-ion battery storage, polysilicon manufacturing and green hydrogen for future growth.

At the same time, the company looks to complete the re-organisation of its thermal and renewable energy businesses under JSW Energy and JSW Neo by the end of this financial year. The re-organisation is expected to create value unlocking opportunities for JSW Neo in the future, Jain said. The scheme of arrangement will see the thermal power business continuing to sit in JSW Energy, a listed company. The green energy and other initiatives will be part of JSW Neo.

“We have received approvals from the National Company Law Tribunal for the re-organisation. We expect to complete the other regulatory approvals by the end of the current fiscal," Jain said.

Currently, close to 70 per cent of JSW Energy's 4.8-Gw installed capacity is thermal-based, while the balance (30 per cent) is renewable energy capacity. In the next two years, the company hopes to change this split, with 55 per cent of installed capacity being renewable-energy-based and 45 per cent being thermal-energy-based.

On the organic growth front, the company is currently setting up 2.5-Gw greenfield renewable energy plants, which are expected to come on stream in the next 12-18 months. For this, the company has a capital expenditure (capex) outlay of Rs 16,000 crore. By next year, the company will revert to a capex plan of Rs 10,000 crore, Jain said.