JSW Energy Limited has garnered Rs 5,000 crore through the sale of shares to institutional investors. Such investors include the Abu Dhabi Investment Authority (ADIA), which aimed to expedite its expansion strategies.
In a regulatory disclosure made on Friday, the company announced the successful conclusion of its Rs 5,000-crore Qualified Institutions Placement (QIP).
JSW Energy stated that the funds generated from the QIP will reinforce its capital structure. Provide greater financial maneuverability. And facilitate the acceleration of its ambitious growth initiatives.
“It further added that the offering attracted significant interest from prominent global long-only investors, domestic mutual funds, and insurance companies.”
The Qualified Institutions Placement (QIP) experienced a subscription of over 3.2 times.
Several major global asset managers, including GQG, Blackrock, Nomura, Wellington, UBS, and ADIA, took part in the QIP offering.
JSW Energy noted that this represents the company’s inaugural equity raise since its listing in 2010.
According to the company, this stands as the most substantial primary equity raise within the Indian power sector in the past decade. It ranks among the top three largest primary equity raises in the history of the sector.
Sharad Mahendra, the joint managing director and CEO of JSW Energy, remarked, “India’s robust investment cycle-driven economic growth trajectory augurs well for the outlook of power demand. The significant interest from institutional investors underscores their steadfast confidence in our position as a diversified energy transition platform, focused on expanding both our generation and storage businesses, with potential for green hydrogen and its derivatives.” He added, “At JSW Energy, we are not merely observing the transformation of the energy sector; we are actively shaping it, establishing new standards for industry leadership, and supporting India’s path towards achieving net-zero targets by 2070.” Jefferies India Private Limited served as the exclusive book-running lead manager, with Khaitan & Co. acting as legal counsel for the company, and Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. serving as counsels to the book-running lead manager.
JSW Energy Limited, which is a division of the USD 23-billion JSW Group, operates across various sectors including steel, energy, infrastructure, cement, and sports, among others.
JSW Energy commenced its commercial operations in 2000 with the inauguration of its initial 2×130 MW thermal power plants located in Vijayanagar, Karnataka.
Over time, the company has progressively augmented its power generation capacity, expanding from 260 MW to 7,189 MW. This portfolio comprises thermal power capacity of 3,508 MW, wind power capacity of 1,615 MW, hydel power capacity of 1,391 MW, and solar power capacity of 675 MW.
Currently, the company is in the process of constructing several power projects totaling 2.6 GW. JSW Energy’s overall locked-in generation capacity stands at 12.5 GW, consisting of 7.2 GW in operational assets and 2.6 GW in assets under construction.
Additionally, the company possesses a locked-in energy storage capacity of 3.4 GWh. This includes both battery energy storage systems and hydro-pumped storage projects.
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The company’s objective is to attain a generation capacity of 20 GW and an energy storage capacity of 40 GWh by 2030. It has established the goal of achieving carbon neutrality by 2050.
