JSW Neo Energy, a wholly owned subsidiary of JSW Energy, has agreed to acquire a portfolio of 1,753 MW of renewable energy generation capacity from Mytrah Energy (India) comprising of 17 SPVs and 1 Ancillary SPV.
The transaction values the Mytrah Energy portfolio at an enterprise valuation of approximately Rs 10,530 crore, after adjusting for net current assets.Necessary definitive agreements have been signed between the parties. The transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size.
The Mytrah portfolio consists of 10 Wind SPVs with a generation capacity of 1,331 MW and 7 Solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of ~18 years.
This is the largest acquisition made by JSW Energy since inception, and will increase the current operational generation capacity by over 35% - from 4,784 MW to 6,537 MW. Moreover, with about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to ~ 9.1 GW - where the share of renewables increases to ~65%. Further, this is likely to help the company in achieving its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines.
Prashant Jain, joint managing director and CEO of JSW Energy, said: "This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India's Energy Transition. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to our shareholders."
Pritesh Vinay, director (finance) and CFO of JSW Energy, said: "We have a multi-pronged asset optimisation, performance improvement and capital structure optimisation plan over the next 12-24 months -which will drive significant value creation over the life of the assets. Moreover, the balance sheet headroom even after consummating this large acquisition will give us the leeway to continue to pursue our growth ambitions."
JSW Neo Energy, a wholly owned subsidiary of JSW Energy, is a vehicle formed as a part of re-organisation of business to own all the renewable/green and new energy businesses. The company is evaluating opportunities to foray into emerging energy businesses of hydro pumped storage, battery energy storage, green hydrogen, and becoming an energy products & services company.
JSW Energy is one of the leading private sector power producers in India and part of the $22 billion JSW Group. JSW Energy has presence across the value chains of the power sector with diversified assets in power generation, and transmission.
JSW Energy's consolidated net profit surged 178.7% to Rs 560.43 crore in Q1 FY23, as against Rs 201.10 crore in Q1 FY22. Net sales climbed 75.2% YoY to Rs 3,026.27 crore in Q1 FY23.
Shares of JSW Energy surged 9.06% to Rs 311.75 on Monday, 8 August 2022.
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