NTPC’s Peers Power Generation Company to Acquire 3 Special Purpose Vehicles (SPVs) of Hetero Group
The stock is up by 96 per cent from its 52-week low of Rs 347.50 per share.
NTPC’s peer company, JSW Energy Ltd has announced plans to acquire a portfolio of 125 MW of wind energy generation capacity from Hetero Labs Limited and Hetero Drugs Limited. This acquisition, through its wholly-owned subsidiary JSW Neo Energy Limited, will involve acquiring three special purpose vehicles (SPVs) that collectively hold the 125 MW capacity. The transaction is subject to customary approvals and is expected to help JSW Energy achieve its target of reaching 10 GW of capacity by FY 2025. The acquired SPVs, located in Andhra Pradesh and Maharashtra, have long-term power purchase agreements and have generated a cumulative revenue of INR 143.5 crores in FY 2024. The transaction is valued at INR 630 crores and is expected to be completed within 90 days.
Earlier, JSW Energy secured several Power Purchase Agreements (PPAs) for renewable energy projects in India. The company has signed PPAs with Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for two solar-wind hybrid projects totalling 1,200 MW, with a tariff of Rs 3.60/kWh. Additionally, JSW Energy has signed a PPA with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 192 MW wind-solar hybrid project, marking its first such agreement. Finally, the company has entered into a PPA with NTPC Limited for a 700 MW solar project, with a tariff of Rs 2.59/kWh. These projects, with a combined capacity of 2.09 GW, are expected to be commissioned within the next 24 months and will contribute to India's renewable energy goals.
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JSW Energy Ltd, a prominent player in India's private power sector, is a member of the expansive USD 23 billion JSW Group. The group holds positions in various industries, including steel, energy, infrastructure, cement, and sports. JSW Energy Ltd. possesses a strong presence throughout the power sector, with assets spanning power generation and transmission. The company's dedication to robust operations, sound corporate governance and prudent capital allocation strategies has fostered sustainable growth and value creation for its stakeholders.
The company has a market cap of over Rs 1,18,000 crore and has been maintaining a healthy dividend payout of 27.5 per cent. In June 2024, FIIs increased their stake to 15.37 per cent from 8.37 per cent in March 2024 while Life Insurance Corporation of India (LIC) owns a 7.05 per cent stake as of June 2024. The stock is up by 96 per cent from its 52-week low of Rs 347.50 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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