JSW Energy has raised INR 4,000 crore through a qualified institutional placement, its second equity fundraising since listing in 2010. Khaitan & Co advised JSW Energy on the transaction, while Jefferies India served as the sole book running lead manager. Shardul Amarchand Mangaldas & Co. and Linklaters Singapore acted as Indian and international legal counsel to the lead managers.
The company’s Finance Committee approved the allotment of 7,61,90,476 equity shares of face value INR 10 each at an issue price of INR 525 per share. This included a discount of INR 9.05 per share, or 1.69% to the floor price, and resulted in total proceeds of about INR 4,000 crore. The allotment led to an increase in JSW Energy’s paid-up equity share capital from INR 1,757.29 crore, consisting of 1,75,72,92,260 shares, to INR 1,833.48 crore, consisting of 1,83,34,82,736 shares.
Two investors received more than 5% of the issue. SBI Equity Hybrid Fund was allotted 3,68,92,990 shares, accounting for 48.42% of the total issue size. GQG Partners Emerging Markets Equity Fund received 1,83,87,066 shares, or 24.13% of the issue. Other participants included BlackRock and several leading insurance companies.
The fresh capital, together with proceeds from a recent preferential allotment to promoters and the monetisation of JSW Steel shares that generated gross proceeds of INR 3,150 crore, is intended to reduce net leverage and strengthen the company’s balance sheet. JSW Energy said the funding will support its growth strategy across renewable energy, thermal power, and energy storage.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said the company is now better capitalised to pursue its Strategy 3.0 with greater agility. He said the funding will help JSW Energy expand across renewable, thermal, and storage platforms while working toward its ambition of becoming one of India’s most transformative energy companies.
The company currently has a locked-in generation capacity of 32.1 GW, including 13.7 GW operational, 13.8 GW under construction, and an additional 4.6 GW in the pipeline. It also has 29.6 GWh of locked-in energy storage capacity. JSW Energy aims to reach 30 GW of generation capacity and 40 GWh of energy storage by 2030.
Prabhakaran Chandrasekaran, Chief Financial Officer of JSW Energy, said the capital raise was designed to support growth in a financially prudent manner across business cycles. He said the proceeds will strengthen the company’s capital structure, enable de-leveraging, improve its bottom line, and keep it on track to achieve a net leverage target of less than 5x by 2030. Linklaters’ deal team was led by Amit Singh, with support from Joseph Wolpin and Utkarsh Mishra.
