JSW Energy Board Greenlights Rs 5,000 Crore QIP Raise

By siliconindia  |  Wednesday, 03 April 2024, 10:12:27 AM IST

JSW Energy Board Greenlights Rs 5,000 Crore QIP Raise
JSW Energy, a prominent player in India's private-sector power generation industry, has greenlit a substantial move to bolster its financial standing. The company's Board has approved a Qualified Institutional Placement (QIP) to raise up to Rs 5,000 crore in funds. This capital infusion, to be executed in one or more tranches, is aimed at fortifying the company's resources for future growth initiatives.
The share placement, scheduled for April 5, will be offered at a floor price of Rs 510.09 per share, representing a 6% discount to the company's recent closing price. While specifics on the utilization of the raised capital were not disclosed, the move underscores JSW Energy's strategic intent to strengthen its financial position.
JSW Energy, a part of the esteemed JSW Group with a market value of $23 billion, boasts a diversified portfolio across power generation and transmission. With assets spanning thermal, wind, hydel, and solar energy, the company has steadily augmented its power generation capacity over the years, currently standing at 9.8 GW, with 6.8 GW in installed capacity.
Eyeing further expansion, JSW Energy is actively constructing power projects totaling 2.6 GW, aiming to achieve a robust total generation capacity of 20 GW by 2030. The company's recent operational performance underscores its resilience and growth trajectory, as evidenced by an EBITDA of Rs 1,229 crore in the third quarter, marking a substantial 69% YoY increase.
JSW Energy's total revenue for the same period surged by 13% YoY to Rs 2,661 crore, primarily driven by incremental contributions from its renewable portfolio and strong thermal performance. The company attributes this buoyancy to a robust merchant market and anticipates further growth amid rapid urbanization, government-led capital expenditure, and a resurgent investment cycle.
Investor sentiment towards JSW Energy remains positive, with its shares witnessing a healthy uptrend, up by over 30% year-to-date. The stock closed over 4% higher at Rs 542 on the National Stock Exchange (NSE) on Tuesday, reflecting investor confidence in the company's prospects and strategic initiatives.

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