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JSW Energy Share Price Rises 5%; Arm to Acquire Renewable Energy Platform from O2 Power

Updated on: Dec 30, 2024, 4:19 PM IST
JSW Energy’s arm signed definitive agreements to acquire O2 Power's 4.7 GW renewable energy platform.
JSW Energy Share Price Rises 5%; Arm to Acquire Renewable Energy Platform from O2 Power
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JSW Neo Energy, a subsidiary of JSW Energy, announced signing definitive agreements to acquire O2 Power’s 4.7 GW renewable energy platform, advancing JSW Energy’s goal of 20 GW capacity by 2030.

Acquisition Details

JSW Energy Limited signed definitive agreements to acquire O2 Power Midco Holdings Pte. Limited and O2 Energy SG Pte. Limited, along with their subsidiaries.

The O2 Entities hold a consolidated renewable energy portfolio of 4.7 GW, which includes operational, under-construction, and planned renewable projects in India, JSW Energy said in a press release on the stock exchanges.

Acquisition to Strengthen Renewable Portfolio

The total enterprise value for this acquisition is approximately ₹12,468 crore (USD 1.47 billion). Upon completion, JSW Neo Energy will own 100% of O2 Power Midco Holdings Pte. Limited and O2 Energy SG Pte. Limited, enhancing JSW Energy’s renewable capacity and contributing to its goal of becoming a major player in India’s energy sector.

JSW Energy’s acquisition of O2 Power aligns with its strategy of leveraging high-quality renewable assets, strengthening its market position, and accelerating the transition to cleaner energy sources.

The completion of this deal is expected by May 2025, once all regulatory approvals and other conditions are met.

JSW Energy Targets 20 GW with Acquisition

The acquisition is subject to the usual regulatory and customary approvals, including those from the Competition Commission of India (CCI) and lenders. The acquisition will significantly contribute to JSW Energy’s renewable-led growth target of achieving 20 GW of capacity by 2030.

The renewable assets to be acquired include 2,259 MW of operational capacity by June 2025, 1,463 MW under construction, and an additional 974 MW in the pipeline. The assets are spread across seven resource-rich states in India, with a blended average tariff of ₹3.37/KWh and a remaining life of about 23 years.

Share Price Performance

On December 30, 2024, JSW Energy’s share price traded 5.90% higher at ₹662.70 at 9:30 AM on the NSE. The stock opened at ₹651.95, higher than ₹625.80 at the previous close.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Dec 30, 2024, 9:40 AM IST

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