JSW Energy gains on completing acquisition of Ind-Barath Energy

JSW Energy rose 1.43% to Rs 287.65 after the company announced it has completed the acquisition of Ind-Barath Energy (Utkal) for a resolution amount of Rs 1,047.60 crore.

The power generation company said, "Pursuant to the NCLT (National Company Law Tribunal) approval order, the resolution plan has now been implemented and the acquisition of Ind-Barath Energy (Utkal) is complete. The resolution amount of Rs 1,047.60 crore has been paid."

The company holds 95% equity shares of Ind-Barath Energy and the secured financial creditors collectively hold the balance 5%, as per the terms of the resolution plan.

Consequent to this transaction, the acquisition of Ind-Barath Energy stands completed and it is now a subsidiary of the company with immediate effect.

Ind-Barath owns a 700 megawatt (MW) thermal power plant located at Jharsuguda district of Odisha, of which Unit-I had been commissioned in 2016 but is non-operational since then due to financial stress at Ind-Barath while Unit-II is yet to be commissioned. The project is expected to be completely operational within the next 24 months, said the company.

The company will infuse additional capital towards expenditure required for completion of the balance work. Further the secured financial creditors of the project will be able to participate in the equity upside with 5% equity shares of Ind-Barath as per the terms of the RP.

Prashant Jain, joint managing director and CEO of JSW Energy, said, We aim to complete the construction and operationalise both the units in 24- month timeframe. The acquisition would help the company in achieving its capacity growth target of 10 GW by FY 2025, well ahead of time. Ind-Barath's strategic location is an added advantage which will expand the company's presence in the Eastern region and further diversify fuel mix and offtake arrangements.

JSW Energy said that it has set a target to reach 20 GW capacity by 2030 and near-term target of 10 GW by 2025, with the acquisition of Ind-Barath the total locked-in capacity stands at 9.9 GW of which total thermal capacity stands at 3.9 GW. Around 1.7 GW of renewable energy projects are currently operational, under-construction/in-pipeline is 2.63 GW and with the acquisition of Mytrah Energy's 1.75 GW renewable energy assets the total renewable locked-in capacity of the company stands at 6.0 GW. JSW Energy has set an ambitious target for a 50% reduction in its carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy, it added.

On 26 July 2022, the company had intimated, that the NCLT Hyderabad had, vide order dated 25 July 2022, (NCLT Approval Order) approved the company's resolution plan dated 3 October 2019, under the corporate insolvency resolution process of Ind-Barath Energy, which is implementing a 700 MW thermal power plant located at Jharsuguda district in Odisha.

JSW Energy is one of the leading private sector power producers in India and part of the $22 billion JSW Group. JSW Energy has presence across the value chains of the power sector with diversified assets in power generation, and transmission.

The company's consolidated net profit surged 37.3% to Rs 465.67 crore on 14.4% rise in revenue from operations to Rs 2,387.48 crore in Q2 FY23 over Q2 FY22.

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