JSW Neo Energy Ltd., a 100% subsidiary of JSW Energy Ltd. has acquired Renewable Energy (RE) generation assets of 1,753 MW capacity from Hyderabad-headquartered Mytrah Energy (India) Pvt. Ltd. (MEIPL). The estimated value of Mytrah’s assets (Enterprise Valuation) is about Rs. 10,150 crore.
This information was shared by JSW Energy in a press release dated 29th March 2023.
JSW Neo Acquires 28 MEIPL SPVs, Two SPVs to be Acquired through Issue of Debentures
JSW Neo Energy has acquired 15 Special Purpose Vehicle (SPV) companies, formerly owned by MEIPL along with their 13 associated SPVs. Together, these 28 companies, which have become JSW Neo’s subsidiaries, have a Renewable Energy (RE) generation capacity of 1,449 MW.
Additionally, two other SPVs of MEIPL which together have an RE generation capacity of 304 MW will be acquired through the issue of Optionally Convertible Debentures (OCDs). For this purpose, binding Forward Sale Agreements entailing the sale of these two companies have been signed between JSW Neo and MEIPL.
JSW Energy’s Portfolio Grows by 36% with MEIPL Assets Acquisition
In its release, JSW Energy stated that the acquisition of MEIPL’s RE assets has resulted in a 36% enhancement in the company’s portfolio. Before the aforementioned acquisition, JSW Energy’s generation capacity stood at 4,811 MW, which has now grown to 6,564 MW. JSW Energy has further stated that this marks the biggest acquisition by the company to date.
Acquired RE assets which formerly belonged to Mytrah Energy comprise 422 MW solar energy generation capacity and 1,753 MW wind energy capacity. Mytrah Energy is largely based in West, South and Central India. The company was established in 2010, and the average life remaining of the PPAs pertaining to its RE assets is 17 years.
Commenting on this acquisition, Mr. Prashant Jain, Joint Managing Director and CEO of JSW Energy said, “This acquisition further strengthens and diversifies our operating footprint across various key resource-rich states, increasing optionality to grow the portfolio further. We are confident to significantly improve the operating performance of the Mytrah portfolio by implementing a comprehensive asset optimisation and performance improvement plan by leveraging our operating and financing expertise.”
JSW Energy Closer to Realising its FY-25 Target of 10GW Installed Capacity
Acquisition of MEIPL’s renewable assets assets has brought JSW Energy a step closer to realising its larger target of having an installed power capacity of 10 GW by FY-25.
Speaking of the company’s future vision, Mr. Prashant Jain said, “The acquisition would help the Company in advancing towards its capacity target of 10 GW by FY 2025, well ahead of time”.
Further, the company’s long-term target is to enhance its installed capacity to 20 GW by FY-30.
JSW Energy additionally stated that apart from this acquisition, the company is in process of developing several projects with an aggregate capacity of 2.9 GW, which are expected to be commissioned in the next 12 to 18 months.
About JSW Energy Ltd.: Mumbai-headquartered JSW Energy Ltd. is a part of the JSW Group, and deals in power generation, transmission and trading. The company’s portfolio comprises hydro, thermal and Renewable Energy generation facilities across several states in India. For the Financial Year 2021-22, the company’s revenue from operations stood at Rs. 8,167.15 crore.