JSW Energy said its arm JSW Neo Energy will acquire 1,753 MW of renewable energy generation capacity from Mytrah Energy for Rs 10,530 crore.
JSW Neo Energy, an entirely-owned subsidiary JSW Energy, has agreed that it will acquire 1,753 MW worth of renewable energy generation capacity from Mytrah Energy India Private Limited. This includes 17 SPVs as well as one AncillarySPV.
It added that the parties have signed all necessary agreements.
The Transaction is subject to approval by the Competition Commission of India and other customary approvals standards applicable to transactions of this size.
According to the statement, the transaction values Mytrah Energy portfolio at Rs 10,530 crore. This figure includes adjustments for net current assets.
Mytrah’s portfolio includes 10 wind SPVs that have a total generation capacity 1,331 MW, and 7 solar SPVs that have a total generation capacity 422 MW, which operate primarily in the central, southern and western parts of India.
JSW Energy’s largest acquisition since inception is this one. It will surpass the current operational generation capacity of over 35% — from 4,784MW to 6,537MW, according to the statement.
JSW Energy’s platform capacity increases to 9.1 GW, with approximately 2,500 MW of hydro and wind projects in construction. These will be commissioned in phases over 18-24 months. The share of renewables rises to 65%.
This will also help the company achieve its renewable-led capacity increase target of 10GW by FY25. This is well ahead of schedules.
“We are thrilled to acquire Mytrah’s 1.75GW renewable energy portfolio. This is value accretive for our shareholders from day one. This historic deal shows our strong commitment towards achieving our vision of 10 GW capacity by 2020 and being a leader in India’s Energy Transition,” Prashant Jin, Joint Managing director and CEO of JSW Energy said.
He said that the acquisition will further diversify and strengthen the operation footprint in key resource-rich states.
We also believe that by leveraging the industry’s operating, financing and operating expertise, we could significantly improve the operating performance across this portfolio. This will create immense value for our shareholders. JSW Energy will continue looking for such value-accretive acquisition opportunities to support its already ambitious growth plans in this sector.
This gives the company a boost and aligns with our renewable-led strategy for growth. Jain stated that we will continue our organic pursuits of green hydrogen and its derivatives play, in addition to generation.
JSW Energy’s acquisition of Mytrah’s portfolio is significant value-accretive. It also reflects the firm’s long track record in being conservative in capital allocation and focusing primarily on high cash returns. Pritesh Vinay (Director (Finance), and CFO at JSW Energy said.
JSW Energy set ambitious targets for a 50% reduction in its carbon footprint by 2030, and reaching carbon neutrality by 2050 through a transition to renewable energy. It also has a goal to reach 20 GW capacity in 2030 with renewable energy at 85 percent.