JSW Energy shares gain amid reports of Rs 800 crore fund raise via bonds

Shares of JSW Energy gained over 3.5 per cent on Wednesday amid reports of the company raising funds worth Rs 800 crore ($92.3 million) via bonds. 

 

JSW Energy's stock rose as much as 3.55 per cent during the day to Rs 567.8 per share. The stock pared gains to trade 3.1 per cent higher at Rs 565.3 apiece, compared to a 0.26 per cent advance in Nifty50 as of 12:18 PM. 

 

Shares of the company extended gains to their third-day while they have fallen 11.8 per cent this year, compared to a 3.25 per cent fall in the benchmark Nifty50. Since hitting a low of Rs 418 this year, the stock has risen by nearly 35 per cent. JSW Energy has a total market capitalisation of Rs 99,133.4 crore. 

 

 

According to media reports, the firm will raise an aggregate of Rs 800 crore by selling bonds maturing in three years and in five years. The company will pay an annual coupons of 8.75% and 8.80% on three-year and five-year bonds, respectively. The has invited commitment bids from bankers and investors for both the bonds later in the day, media reports said. 

 

Earlier this year, JSW Energy revised its capital expenditure target for fiscal 2025 to Rs 10,000 crore, down from an earlier estimate of Rs 15,000 crore, citing strategic shifts toward inorganic growth through acquisitions. As part of its long-term expansion strategy, JSW Energy aims to reach 10 Gigawatt (Gw) capacity by FY25 and 20 Gw by FY30. 

 

JSW Energy reported a consolidated net profit of Rs 167.83 crore as compared to a profit of Rs 231.33 crore a year ago. The revenue of the company for the quarter under review declined 5.6 per cent to Rs 2,400 crore as compared to Rs 2,542.8 crore a year ago.

 

The Earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter under review declined 9 per cent Y-o-Y to Rs 1,115 crore as due to lower short-term spreads, despite a 28 per cent increase in short-term generation. A year ago Ebitda for the corresponding quarter stood at Rs 1,229 crore.