The proceeds from the QIP will be used to pare debt and also invest in the renewable arm, JSW Neo Energy.
“The proceeds from the QIP will bolster an already strong capital structure even further, significantly enhance our financial flexibility, and enable us to accelerate our ambitious growth plans,” said Pritesh Vinay, Director (Finance), JSW Energy.
The QIP opened on April 2 and closed on Friday. The company said the issue garnered strong interest from global investors, domestic mutual funds, and insurance companies and was subscribed over 3.2 times.”Determining and approving the allocation of 10.30 crore equity shares at an issue price of Rs485 per equity share which is at a discount of Rs 25.09 per equity share i.e. 4.92% to the floor price of 510.09,” the company said.
This is the first-ever equity raise by the company since its listing in 2010 and the largest primary equity raise in the Indian power sector in the last decade.
“India’s strong investment cycle-driven economic growth momentum bodes well for power demand outlook,” said Sharad Mahendra, joint managing director and CEO of JSW Energy.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 is part of the $ 23 billion JSW Group, with a presence in sectors such as steel, energy, infrastructure, cement, and sports.
With assets in power generation and transmission, JSW Energy began commercial operations in 2000, with the commissioning of its first 2×130 MW thermal power plants at Vijayanagar, Karnataka.
Since then, the company has steadily enhanced its power generation capacity from 260 MW to 7,189 MW having a portfolio of thermal 3,508 MW, wind 1,615 MW, hydel 1,391 MW, and solar 675 MW.
The company is presently constructing various power projects to the tune of 2.6 GW.
On Friday, JSW Energy’s scrip ended 2.74% higher at Rs 598.90 while the Benchmark Sensex ended nearly flat.
