JSW Energy Ltd (or “the Company”) has successfully completed its ₹4,000 Crore Qualified Institutional Placement (or “QIP”), marking its second equity raise since listing in 2010. The issue was met with overwhelming investor demand, reflecting deep institutional confidence in India’s multi-decadal power sector growth opportunity and in the Company’s distinctive positioning as an integrated and diversified energy platform spanning generation, energy storage, and energy products and services
The QIP attracted participation from some of the leading domestic mutual funds like SBI Mutual Fund, world’s premier institutional investors – including GQG, Blackrock, amongst others – along with leading insurance companies. Notably, several of these investors participated in the Company’s previous equity raise as well, reaffirming their conviction in the Company’s long-term growth trajectory across market cycles.
The proceeds from this raise (₹4,000 Cr), combined with liquidity available through the recent preferential allotment to the promoters, and the monetisation of JSW Steel shares (gross proceeds of ₹3,150 Cr), strengthen the Company’s balance sheet further and enable it to pursue its growth aspirations. The capital received from these series of transactions will lead to a reduction in net leverage – positioning JSW Energy as one of the most robustly capitalised independent power producers in India. A reduced leverage position and a further improvement in an already robust liquidity pool help the company to focus on its project execution, enabling the Company to pursue project commitments with speed and conviction.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: “This capital raise is a strong endorsement of our strategy and the long-term structural opportunity in India’s power sector. The quality of our investor base – amongst leading global asset managers and domestic institutions, many of whom have backed us across both our recent equity raises – reflects the confidence the market places in our Company and our people. With this raise, we are now well-capitalised to pursue our Strategy 3.0 with agility – expanding across renewable, thermal, and energy storage platforms, and delivering on our ambition of becoming one of India’s most transformative energy companies.”
Prabhakaran Chandrasekaran, CFO of JSW Energy, said: “The institutional and domestic mutual funds’ response to this QIP reflects the financial discipline and capital allocation strategy that define JSW Energy. The capital raise is aimed at securing the Company’s growth in a financially prudent manner to enable it to pursue its aspirations across business cycles. The proceeds of the above issue strengthen our capital structure – enabling de-leveraging and improving our bottom line. This capital raise ensures our ambition is backed by a well-capitalised balance sheet, keeping us firmly on track to reach our target net leverage of less than 5x by 2030.”
Jefferies India Private Limited was the sole Book Running Lead Manager, Khaitan & Co. was the Legal Counsel to the Company, while Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. were the Legal Counsels to the Book Running Lead Manager.
JSW Energy has a total locked-in generation capacity of 32.1 GW, comprising 13.7 GW operational and 13.8 GW under construction across thermal, hydro, and renewables, with a pipeline of 4.6 GW. The company also has 29.6 GWh of locked-in energy storage capacity, comprising pumped hydro storage of 26.4 GWh and battery energy storage systems of 3.2 GWh. The Company aims to reach 30 GW of generation capacity and 40 GWh of energy storage capacity by 2030, and to achieve carbon neutrality by 2050.
