How JSW Energy Fresh QIP of Rs 5,000 Cr successful?
JSW Energy, a prominent player in the energy sector, has successfully raised a substantial amount of Rs 5,000 crore through a qualified institutional placement (QIP) of its shares.
Notable investors, including Abu Dhabi Investment Authority (ADIA), Blackrock, and other esteemed global asset managers, participated in this significant fundraising initiative, as announced by the company on Friday evening.
The QIP witnessed an impressive oversubscription rate of 3.2 times, underscoring the strong investor confidence in JSW Energy’s growth prospects.
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This milestone marks JSW Energy’s first equity raise since its listing in 2010, signifying a pivotal moment for the company.
Highlighting the significance of this achievement, JSW Energy stated, “This is the largest primary equity raise in the Indian power sector in the last decade and ranks among the top three largest primary equity raises in the history of the Indian power sector.”
The company allocated shares to 97 qualified institutional buyers at an issue price of Rs 485 per equity share, which incorporates a discount of Rs 25.09 per equity share, equivalent to 4.92% of the floor price established in accordance with the Sebi ICDR regulations.
Utilizing the proceeds from the QIP, JSW Energy plans to allocate Rs 3,139 crore towards debt repayment/prepayment, Rs 611 crore towards investments in Neo Energy, and the remaining amount towards general corporate purposes, aligning with its strategic objectives and growth trajectory.
JSW Energy’s financial standing reflects its commitment to sustainable growth, with its net debt increasing from Rs 9,840 crore in Q3FY23 to Rs 26,286 crore in Q3FY24.
The company’s net debt to equity ratio rose from 0.5 in Q3FY23 to 1.3 in Q3FY24, while maintaining a cash reserve of Rs 2,867 crore as of Q3FY24.
In terms of renewable assets, JSW Energy boasts a total capacity of 5,934 MW as of Q3FY24, comprising 3,628 MW of wind power, 1,631 MW of hydroelectric power, and 675 MW of solar energy.
The company currently operates 3,681 MW of renewable assets, with an additional 2,253 MW under construction, set to be operational by CY24.
Jefferies India served as the sole book running lead manager for the QIP, with Khaitan & Co providing legal counsel to the company. Reflecting on the successful fundraising initiative, Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, expressed, “The strong institutional investor interest reflects their unwavering confidence in our positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives.”
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Pritesh Vinay, Director (Finance) and CFO of JSW Energy, emphasized the company’s commitment to disciplined capital allocation, operational excellence, and strategic growth initiatives.
He stated, “The proceeds from the QIP will further strengthen our capital structure, enhance financial flexibility, and accelerate our ambitious growth plans, reinforcing our position as a leader in the energy sector and contributing to India’s journey towards achieving net-zero targets by 2070.”
