Solar-Wind Power Generation Company Completes the Acquisition of 4.7 GW RE Platform from O2 Power
The stock is up by 17 per cent from its 52-week low of Rs 419.10 per share.
JSW Neo Energy Limited, a wholly-owned subsidiary of JSW Energy Limited, has successfully completed the acquisition of a 4.7 GW renewable energy (RE) platform from O2 Power Pooling Pte. Ltd., which was jointly established by EQT & Temasek in 2020. The enterprise valuation of this platform is approximately ₹12,468 crores, following adjustments outlined in the share purchase agreements. JSW Energy anticipates a steady-state EBITDA generation of ₹1,500 crores from a 2,259 MW capacity, which is expected to be operational by June 2025.
To further expand the capacity to 4,696 MW by June 2027, the Company will incur a capital expenditure of approximately ₹13,500 crores. At this stage, the platform is projected to achieve a steady-state annualized EBITDA of ₹3,750 crores. As of FY 2025, O2 Power's installed capacity was 1,343 MW. Consequently, JSW Energy's proforma FY 2025 installed capacity now stands at 12,212 MW, with renewable energy capacity accounting for 6,554 MW, representing approximately 54% of the total.
The acquired platform encompasses 4,100 MW of Utility-scale RE projects and 596 MW of C&I capacity. Out of the total platform capacity, 3,722 MW is secured under Power Purchase Agreements (PPAs) with high-credit-quality off-takers, including both utility-scale and commercial & industrial (C&I) customers. An additional 974 MW of capacity has received Letters of Award/Intent and is awaiting PPA signing. The assets are spread across seven resource-rich states, predominantly in western India, and feature a diversified energy mix comprising 1.8 GW of solar, 0.5 GW of wind, 1.6 GW of hybrid, and 0.9 GW of complex solutions like FDRE/RTC, with a blended average tariff of ₹3.37/KWh.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
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 80,000 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 17 per cent from its 52-week low of Rs 419.10 per share. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.