JSW Energy announces completing Rs 5,000 cr QIP to fund growth plans

JSW Energy has raised Rs 5,000 crore through the Qualified Institutions Placement (QIP) route, said the power company late Friday.

"The proceeds from the QIP will bolster an already strong capital structure even further, significantly enhance our financial flexibility, and enable us to accelerate our ambitious growth plans," said Pritesh Vinay, director (finance) and chief financial officer of JSW Energy, in a statement.

The company, in a disclosure earlier, had said the proceeds would be used for investments in JSW Neo Energy, a subsidiary which holds green energy assets and repayment of certain borrowings.

The company said the issue garnered strong interest from marquee global investors, domestic mutual funds and insurance companies. JSW Energy added the QIP marks the first-ever equity raise by the company since its listing in 2010. It is the largest primary equity raise in the Indian power sector in a decade.

The QIP witnessed a response of over 3.2 times subscription. Global asset managers GQG, Blackrock, Nomura, Wellington, UBS and Abu Dhabi Investment Authority are among investors that participated in the QIP.

“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,” said Sharad Mahendra, joint managing director and chief executive officer of JSW Energy.