JSW Energy Ltd., a part of the $23 billion JSW Group, announced that it has successfully raised ₹5,000 crore through the qualified institutions placement (QIP) to accelerate its growth plans.
In a late regulatory filing, the company disclosed that it will use the proceeds of the QIP for the prepayment of its debt and to invest in its renewable arm, JSW Neo Energy.
Also Read: Why JSW Energy’s equity dilution move at the parent level makes sense
The issue was opened by the power vertical of the group on 2 April 2024 and closed on 5 April after its board approved the allotment of 10,30,92,783 equity shares to 97 qualified institutional buyers at the issue price of ₹485 per equity shares, a discount of 4.92% to the floor price.
The company further said that out of the ₹5,000 crore proceeds, it plans to use ₹3,139 crore towards prepayment of debt, while ₹611 crore will be used towards investment in Neo Energy, and the rest for general corporate purposes.
“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) and CFO of JSW Energy.
The issue, the company added, garnered a strong interest from marquee global long-only investors, domestic mutual funds, and insurance companies. “The QIP witnessed an overwhelming response resulting in over 3.2 times subscription,” it added in the filing.
“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,” said Sharad Mahendra, joint managing director and CEO of JSW Energy.
Global asset managers like GQG, Blackrock, Nomura, Wellington, UBS and Abu Dhabi Investment Authority (ADIA) participated in the QIP.
Jefferies India Pvt. Ltd. was the sole book running lead manager, with Khaitan & Co. as the legal counsel to the company while Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. being the legal counsels to the book running lead manager.
JSW Energy has a total locked-in generation capacity of 12.5 GW. In addition, the company has 3.4 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project.
The company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030 with carbon neutrality by 2050.
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Published: 06 Apr 2024, 11:42 AM IST