Solar-Wind Power Generation Company Enters Into Share Purchase Agreement To Acquire 100 Per Cent Shares of Virya Infrapower Pvt Ltd
The stock is up by 25 per cent from its 52-week low of Rs 439.35 per share.
JSW Energy Limited has announced that its wholly-owned subsidiary, JSW Neo Energy Limited (JSWNEL), has acquired 100% of Virya Infrapower Private Limited through a Share Purchase Agreement. Virya Infrapower, now a step-down subsidiary of JSW Energy, is focused on developing renewable energy projects in India. Notably, its revenue from operations for the fiscal year 2023-24 was nil. The acquisition, completed for an enterprise value of INR 7.54 crores in cash, provides JSWNEL with a ready renewable power site and the necessary infrastructure to accelerate project development. This transaction is not a related party transaction and required no governmental or regulatory approvals.
The primary objective of this acquisition is to expand JSW Energy's renewable energy portfolio. Virya Infrapower, incorporated in 2014, although having generated no revenue in the past three fiscal years, offers a valuable asset with its established infrastructure. This aligns with JSW Energy's strategic goal of achieving 20 GW of generation capacity and 40 GWh of energy storage capacity significantly before 2030. The acquisition closed on the same day as the signing of the Share Purchase Agreement, indicating a swift and efficient transaction.
JSW Energy, part of the O.P. Jindal Group, currently possesses 8.2 GW of operational generation capacity across thermal, hydro, and renewable energy sources, along with a locked-in generation capacity of 30 GW. Furthermore, the company has 16.3 GWh of locked-in energy storage capacity through battery energy storage systems and a hydro-pumped storage project. The acquisition of Virya Infrapower contributes to JSW Energy's ongoing efforts to strengthen its position in the renewable energy sector and achieve its ambitious growth targets.
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About JSW Energy Ltd
JSW Energy Ltd is one of the leading Private sector power producers in India and part of the USD 24 billion JSW Group, which has a significant presence in sectors such as steel, energy, infrastructure, cement, and sports, among others. JSW Energy Ltd has established its presence across the value chains of the power sector with diversified assets in power generation and transmission. With strong operations, robust corporate governance and prudent capital allocation strategies, JSW Energy continues to deliver sustainable growth and create value for all stakeholders. JSW Energy began commercial operations in 2000 with the commissioning of its first 2x130 MW thermal power plants at Vijayanagar, Karnataka.
The company has a market cap of over Rs 90,000 crore and has been maintaining a healthy dividend payout of 27.5 per cent. As of December 2024, the Life Insurance Corporation of India (LIC) owns a 6.92 per cent stake. The stock is up by 25 per cent from its 52-week low of Rs 439.35 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.