In order to expedite its expansion plans, JSW Energy Limited has raised Rs 5,000 crore by selling shares to institutional investors, among them Abu Dhabi Investment Authority (ADIA).
The company announced on Friday that it had successfully finished its Rs 5,000-crore Qualified Institutions Placement (QIP) in a regulatory filing.
According to JSW Energy, the money raised through the QIP will strengthen its capital structure even more, increase its financial flexibility, and help the business move forward with its aggressive expansion plans.
It went on, “Reputable international long-only investors, domestic mutual funds, and insurance companies showed a great deal of interest in the issue.”
The QIP saw subscriptions exceeding 3.2 times.
ADIA, Wellington, UBS, GQG, Blackrock, Nomura, and Wellington are a few of the biggest global asset managers that took part in the QIP offering.
JSW Energy said, “Since the company’s listing in 2010, this is the first equity raise it has ever done.”
This ranks among the top three largest primary equity raises in the Indian power sector’s history and represents the largest primary equity raise in the industry in the past ten years, according to the company.
JSW Energy’s CEO and joint managing director, Sharad Mahendra, stated: “India’s robust economic growth momentum driven by the investment cycle is encouraging for the country’s power demand outlook.” Our positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives, is evident in the strong interest from institutional investors, which reflects their unwavering confidence in us. He stated, “At JSW Energy, we are actively shaping the energy sector, setting new benchmarks for industry leadership, and supporting India’s journey towards net-zero targets by 2070.” He was not just witnessing the sector’s transformation. Jefferies India Private Limited served as the only lead manager for books running. The company’s legal counsel was Khaitan & Co. To the lead manager overseeing the book, Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. provided advice.
A member of the USD 23 billion JSW Group, JSW Energy Limited operates in a number of industries, including steel, energy, sports, infrastructure, and cement.
JSW Energy started its commercial operations in 2000 when it put its first 2×130 MW thermal power plants in Vijayanagar, Karnataka, into service.
Since then, the company has gradually increased the amount of power it generates, from 260 MW to 7,189 MW, with a portfolio that includes 1,508 MW of thermal, 1,615 MW of wind, 1,391 MW of hydel, and 675 MW of solar.
Currently, the company is building 2.6 GW of various power projects. JSW Energy has 12.5 GW of total locked-in generation capacity, of which 2.2 GW are operational and the remaining 2.6 GW are in the construction phase.
The company also has 3.4 GWh of locked-in energy storage capacity thanks to a hydro pumped storage project and a battery energy storage system.
Prior to 2030, the company wants to achieve 20 GW of generation capacity and 40 GWh of energy storage capacity. It has set a goal to become carbon neutral by 2050.
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