JSW Neo Energy, a subsidiary of JSW Energy Ltd, on Wednesday said it has agreed to acquire a portfolio of 1,753 megawatts (MW) of renewable energy generation capacity from Mytrah Energy (India) Pvt. Ltd, for an enterprise valuation of approximately Rs 10,530 crore.
The transaction is subject to approval of the Competition Commission of India (CCI) and other customary approvals, the company said in a stock exchange filing.
The Mytrah portfolio consists of 10 wind SPVs with a generation capacity of 1,331 MW and seven solar SPVs with a generation capacity of 422 MW, operating primarily in the southern, western and central parts of India. The assets have long-term PPA (power purchase agreement) with average remaining life of 18 years.
This is the largest acquisition made by JSW Energy since inception, and will propel its current operational generation capacity by over 35% to 6,537 MW from 4,784 MW. JSW added that with about 2,500 MW of under-construction wind and hydro projects which are likely to be commissioned in phases over the next 18-24 months, the capacity of JSW Energy platform will increase to 9.1 GW, with the share of renewables rising to 65%. This is likely to help the company achieve its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines, JSW Energy said.
“This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s Energy Transition.
This acquisition further strengthens and diversifies our operating footprint across various key resource rich states. We also believe that by leveraging our strong industry, operating and financing expertise, we would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to our shareholders,” said Prashant Jain, joint managing director and CEO of JSW Energy.
“JSW Energy will continue to look for more such opportunities for value accretive acquisition to aid its already ambitious growth plans for this sector. Aside from generation, we also continue to pursue our organic pursuit of storage as well as green hydrogen and its derivatives play,” Jain added.
KPMG India Services LLP was the transaction advisor to the company, while Khaitan & Co. was the legal adviser.
JSW Neo Energy is a vehicle formed as a part of re-organisation of JSW Energy’s business to own all the renewable/green and new energy businesses. The company is evaluating opportunities to foray into emerging energy businesses of hydro pumped storage, battery energy storage, green hydrogen, and becoming an energy products & services company.
