Image Source: Equitypandit
JSW Energy Ltd has made a firm commitment towards speeding up its ambitious growth plans, with its board sanctioning a big fundraising program of up to Rs 10,000 crore. The capital raise, which will be done in one or more tranches, will help the company's aggressive expansion plan and acquisition plans as it plans to double its power generation capacity to 20 GW by 2030.
The fund raising will be carried out via a combination of money instruments such as private placements, preferential allotments, and qualified institutional placements, subject to market sentiment and regulatory environments. The company is also requesting further enabling sanction from shareholders at its forthcoming Annual General Meeting to raise money further, up to Rs 10,000 crore, as and when needed.
This follows a string of successful capital market activity. In March 2025, JSW Energy raised Rs 800 crore through the private placement of 80,000 unsecured, rated, listed, taxable, redeemable non-convertible debentures (NCDs) in two tranches. The first tranche of Rs 400 crore with a green shoe option of Rs 100 crore will be repayable in three years at a coupon rate of 8.75%. The second tranche of Rs 400 crore has a five-year maturity and an 8.80% coupon rate. These NCDs will be listed on BSE Limited, with annual interest payments and principal repayment at maturity.
The firm's strong fund-raising activity is consistent with its updated fiscal 2025 capital spending target of Rs 10,000 crore, a cut from the previous estimate of Rs 15,000 crore. This updating shows JSW Energy's shift in strategy towards inorganic growth, which is driven by acquisitions, as seen in its recent acquisition of the 4.7 GW renewable energy business of O2 Power.
JSW Energy's consolidated net worth was at Rs 20,832 crore, with net debt at Rs 26,636 crore as of March 31, 2024, giving a net debt-to-equity ratio of 1.3. Its leadership highlighted financial flexibility, as it is geared to quickly move into new opportunities in the changing energy landscape.
Having a robust pipeline of projects and a well-defined thrust on clean energy acquisitions, JSW Energy is looking to become a leader in India's changing power scene. The recent fundraising approval further reinforces its vision of sustainable growth and stakeholders' value creation.
Sources: Moneycontrol, CNBC-TV18, Business Standard, Angel One
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