JSW Energy arm acquires renewable energy platform for Rs 12,468-cr

JSW Energy said that its wholly owned subsidiary, JSW Neo Energy has acquired 4.7 GW renewable energy (RE) platform from O2 Power Pooling Pte.

The platform is valued at an enterprise valuation of approximately Rs 12,468 crore, after adjustments under the share purchase agreements.

The acquired platform comprises of 4,100 MW of Utility scale RE projects and C&I capacity of 596 MW. Of the total platform capacity, 3,722 MW is tied-up under PPAs with high-credit-quality off-takers comprising of both utility scale and commercial and industrial (C&I) customers. While 974 MW of capacity has received Letter of Awards/Intent and are awaiting PPA signing.

The portfolio features a well-diversified energy mix, including 1.8 GW of solar, 0.5 GW of wind 1.6 GW of hybrid and 0.9 GW of complex solutions like firm and dispatch renewable energy (FDRE)/Round-The-Clock (RTC). The platform has a blended average tariff of Rs 3.37/KWh.

The company will have a steady state EBITDA generation of Rs 1,500 crore from 2,259 MW capacity (likely to be operational by June 2025). Additionally, around Rs 13,500 crore of capital expenditure will be incurred to reach 4,696 MW of capacity by June 2027, at which stage it will have a steady state annualised EBITDA of Rs 3,750 crore.

As of FY 2025, O2 Power's installed capacity stands at 1,343 MW. Consequently, the companys proforma FY 2025 installed capacity stands at 12,212 MW, with RE capacity accounting for 6,554 MW (around 54% of total).

Sharad Mahendra, joint managing director and CEO of JSW Energy, said, We are pleased to announce the completion of JSW Energy's largest acquisition to date of 4.7 GW of O2 Power. This acquisition brings high-quality assets across resource-rich states, along with management team and employees having a proven track record in planning and execution. This strategic acquisition brings us closer to achieving our 20 GW capacity target significantly before 2030. O2 Power also brings additional connectivity for 900 MW, which will facilitate our future growth. We warmly welcome O2 Powers experienced management team and employees to the JSW Energy family.

Pritesh Vinay, director (finance) and CFO of JSW Energy, said, The completion of O2 Power acquisition underscores our commitment towards value accretive growth and prudent capital allocation. O2 Power has built an attractive portfolio and pipeline of projects which adds to our asset base and strengthens our operational capabilities and presence. Not only is this acquisition attractive both from Build vs Buy trade off as well as from a quality and value perspective but also we will draw synergies operationally as well as enhance portfolio returns from a competitive financing package to fund this transaction.

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

The companys consolidated net profit declined 27.4% to Rs 167.83 crore in Q3 FY25 as compared with Rs 231.33 crore in Q3 FY24. Net sales fell 4.1% YoY to Rs 2,438.88 crore in Q3 FY25.

The scrip declined 1.63% to settle at Rs 482.20 on Wednesday, 9 April 2025. The stock market will remain closed today in observance of Shri Mahavir Jayanti.

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