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JSW Energy arm inks pact to acquire 3 SPVs from Hetero Group

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Last Updated : Oct 21 2024 | 8:31 AM IST

JSW Energy said that its wholly owned subsidiary, JSW Neo Energy has signed definitive agreement to acquire 3 special purpose vehicles (3 SPVs) holding a portfolio of 125 MW of wind energy generation capacity from Hetero Group.

JSW Neo Energy will acquire 3 SPVs, Hetero Wind Power, Hetero Wind Power (Pennar), Hetero Med Solutions from Hetero Labs and Hetero Drugs. Revenue from operations of the said 3 SPVs was Rs 143.5 crore in FY24.

JSW Energy NEO will acquire 100% stake in Hetero Wind Power (Pennar) and Hetero Med Solutions, while the company will acquire around 74% stake in Hetero Wind Power where captive consumer will continue to hold approximately 26% shares.

The company will acquire 3 SPVs for total consideration of Rs 630 crore, subject to net working capital adjustments and other adjustments at the time of closing.

This acquisition would help the company in achieving its targeted growth of 10 GW by FY 2025. The company has set a target to reach 10 GW capacity by FY 2025 and 20 GW capacity before 2030.

The transaction envisages a long stop date of 90 days and is subject to fulfilment of conditions precedent as set out in the definitive agreements.

JSW Energy is the power utility arm of the JSW Group. The company has its presence in power generation, power transmission, mining and power trading across multiple states.

The power generation companys consolidated net profit jumped 79.99% to Rs 521.76 crore in Q1 FY25 as compared with Rs 289.88 crore recorded in Q1 FY24. However, revenue from operations fell by 1.65% YoY to Rs 2,879.46 crore June 2024 quarter.

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The shares of JSW Energy rose 0.04% to settle at Rs 677.05 on Friday, 18 October 2024.

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First Published: Oct 21 2024 | 8:13 AM IST

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