JSW Energy has successfully raised Rs 5,000 crore through qualified institutional placement (QIP) of its shares from investors, including Abu Dhabi Investment Authority (ADIA), Blackrock and other global asset managers, the company said on Friday night. The QIP was oversubscribed by 3.2 times, it said. This marks the first-ever equity raise by the company since its listing in 2010, JSW Energy said.
“This is the largest primary equity raise in the Indian power sector in the last decade and among the top three largest primary equity raises in the history of the Indian power sector,” the company said.
The company has allotted shares to 97 qualified institutional buyers at the issue price of Rs 485 per equity share, which includes a discount of Rs 25.09 per equity share i.e. 4.92% of the floor price, as determined in terms of the Sebi ICDR regulations.
The company plans to use `3,139 crore from the proceeds towards repayment/prepayment of debt and Rs 611 crore towards investment in Neo Energy and rest towards general corporate purposes, the company said.
The company’s net debt has gone up from `9,840 crore in Q3FY23 to `26,286 crore in Q3FY24. Its net debt to equity has gone up from 0.5 in Q3FY23 to 1.3 in Q3FY24. It had cash of `2,867 crore as of Q3FY24.
The company had renewable assets of total 5,934 MW as on Q3FY24, of which 3,628 MW is wind, 1,631 MW is hydro and 675 MW is solar. It had total operational renewable assets of 3,681 MW and 2,253 MW of under construction assets which are to be operational by CY24.
Jefferies India was the sole book running lead manager, while Khaitan & Co was the legal counsel to the company. Sharad Mahendra, joint managing director and CEO of JSW Energy, said: “ 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. At JSW Energy, we are not just witnessing the transformation of the energy sector; we are actively shaping it, setting new benchmarks for industry leadership, and aiding India’s journey towards net zero targets by 2070.”
Pritesh Vinay, Director (Finance) and CFO of JSW Energy, said: “It validates JSW Energy’s positioning of having best-in-class disciplined capital allocation track record, proven execution capability to build large scale projects at competitive costs, operational excellence, and a strong pipeline of returns-accretive growth projects. 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.”