JSW Energy Mops Up $600 Mln Via QIP To Accelerate Growth Plans

JSW Energy Ltd. raised 5,000 crore rupees ($600 million) via qualified institutional placement (QIP) of shares, enabling the company to accelerate its growth plans.

The board’s finance committee on 5 April allotted about 10.31 crore shares to 97 qualified institutional buyers at 485 rupees per share, the Indian power producer said in a stock exchange announcement.

JSW Energy said the QIP witnessed an overwhelming response, resulting in over 3.2 times subscription. The issue, which opened on 2 April and closed on 5 April, garnered a strong interest from global investors, domestic mutual funds and insurance companies, it added.

The QIP saw participation of global asset managers like GQG, BlackRock, Nomura, Wellington, UBS and Abu Dhabi Investment Authority (ADIA), JSW Energy said, noting that this marks the first-ever equity raise by the company since its listing in 2010.

BET ON POWER SECTOR

JSW Energy said the participation of investors reflects their confidence in India’s power sector outlook and the company’s distinctive positioning as a leading player in the domestic power sector.

“India’s strong investment cycle driven economic growth momentum bodes well for power demand outlook,” JSW Energy Chief Executive Officer and Joint Managing Director Sharad Mahendra said in a statement.

The strong institutional investor interest reflects their unwavering confidence in the company’s positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives, he added.

Jefferies India Private Ltd. was the sole book running lead manager, while Khaitan & Co. was the legal counsel to the company. Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. were the legal counsels to the book running lead manager.

BOOST TO PROJECTS

“The proceeds from the QIP will bolster an already strong capital structure even further, significantly enhance our financial flexibility, and enable us to accelerate our ambitious growth plans,” JSW Energy Chief Financial Officer and Finance Director Pritesh Vinay said.

JSW Energy has total locked-in generation capacity of 12.5 gigawatts (GW), comprising 7.2-GW operational, 2.6-GW under-construction assets across wind, thermal and hydro and Letter of Awards/Letter of Intents for 2.7-GW capacity from Solar Energy Corporation of India, SJVN Ltd. and Gujarat Urja Vikas Nigam Ltd.

In addition, the company has 3.4 gigawatts hours (GWh) of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project.

JSW Energy aims to reach 20-GW generation capacity and 40 GWh of energy storage capacity before 2030.

Note: $1 = 83.3521 Indian rupees

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