JSW group to raise Rs 1,487 crore for setting up EV unit in Maharashtra

JSW Greentech Ltd, a JSW Group entity, plans to raise about ₹1,487 crore through a long-term loan for setting up a greenfield facility to manufacture electric buses (e-buses) and electric trucks (e-trucks) as well as a supporting eco-system in Aurangabad, Maharashtra.

 

The automotive facility is expected to have a capacity to make 10,000 e-buses and 5,000 e-trucks per annum.

 

The capital expenditure (capex) for the manufacturing facility for vehicles and related components is to be funded by debt of ₹1,487.5 crore and the rest by equity infusion from the JSW Group.

 

Rating agency ICRA has assigned an ‘A-’ rating (stable) for long-term loans of JSW Greentech. 

 

The financial closure for the project has been achieved and the sanctioned credit has a long tenor with door-to-door tenor of more than 10 years.

 

There will be a moratorium of one year after the scheduled commercial operations date (SCOD). The SCOD for the project is July 2027, according to ICRA’s rating rationale statement for term loan.

 

Till January 6, 2025, the company had incurred only 3 per cent of the project cost, which was funded through equity.

 

JSWGTL has also entered into an early-stage memorandum of understanding (MoUs) with some of its group companies and third-party operators, which mitigates the off-take risk to an extent.

 

ICRA said ratings factor in superior financial flexibility for being part of the JSW Group, a leading conglomerate with presence in sectors like steel, energy, infrastructure, cement, ecommerce, sports and venture capital.

 

The market capitalisation of the group’s listed entities is more than ₹3.6 trillion.

 

Meanwhile, another group entity JSW UAV Ltd, which will produce unmanned aerial systems (UAS), has tied up part of its funds for its greenfield manufacturing complex in Ranga Reddy district, Telangana. 

 

The total estimated cost for this stands at ₹714.0 crore, which will be funded through debt-equity ratio of 70:30.

 

It achieved partial financial closure to the extent of ₹250 crore of the total debt funding requirement of ₹500 crore.

 

Commercial operations are set to begin in Q1FY28, according to ICRA.