JSW Energy advances after calling off deal to acquire JSPL power plant

JSW Energy rose 3.13% to Rs 70.75 at 15:24 IST on BSE after the company terminated a business agreement to acquire 1,000 megawatt thermal power plant in Chhattisgarh.

The announcement was made after market hours yesterday, 1 July 2019.

Meanwhile, S&P BSE Sensex was up 143.03 points or 0.36% at 39,829.53.

On BSE, 1.7 lakh shares were traded in JSW Energy counter, compared to a 2-week average of 50,000 shares. The share price hit an intraday high of Rs 72 and an intraday low of Rs 69.10. It hit a 52-week high of Rs 77 on 28 May 2019 and a 52-week low of Rs 56 on 8 October 2018.

On 3 May 2016, JSW Energy agreed to acquire 1000 MW (4x250 MW) thermal power plant located in Chhattisgarh from Jindal Steel and Power. On 28 June 2018, the company informed that as the conditions precedent were yet to be completed, it decided to extend the long stop date from 30 June 2018 to 30 June 2019.

With the elapsing of the long stop date without completion of the stipulated conditions precedent, the proposed acquisition of the said power plant stands terminated.

On a consolidated basis, JSW Energy reported net profit of Rs 3.87 crore in Q4 March 2019 as against net loss of Rs 483.07 crore in Q4 March 2018. Net sales rose 8.42% to Rs 1924.58 crore in Q4 March 2019 over Q4 March 2018.

JSW Energy is a private sector power company.

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