JSW Energy raises Rs 5,000 crore by selling shares to investors, including ADIA

JSW Energy Limited has raised Rs 5,000 crore by selling shares to institutional investors, including Abu Dhabi Investment Authority (ADIA), to accelerate its growth plans. In a late regulatory filing on Friday, the company informed that it has successfully completed its Rs 5,000-crore Qualified Institutions Placement (QIP).

JSW Energy said the proceeds from the QIP will further bolster its capital structure, enhance financial flexibility and enable the company to accelerate its ambitious growth plans. "The issue garnered a very strong interest from marquee global long-only investors, domestic mutual funds and insurance companies...," it added.

The QIP witnessed more than 3.2 times subscription.

Some of the largest global asset managers, such as GQG, Blackrock, Nomura, Wellington, UBS and ADIA, participated in the QIP issue.

"This marks the first-ever equity raise by the company since its listing in 2010," JSW Energy said.

This is the largest primary equity raise in the Indian power sector in the last decade and among the top three largest primary equity raises in the history of the Indian power sector, the company said.

Sharad Mahendra, joint managing director and CEO of JSW Energy, said: "India's strong investment cycle-driven economic growth momentum bodes well for power demand outlook. 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, he said, "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." 

JSW Energy Limited is one of the leading private sector power producers in India.

It is part of the USD 23-billion JSW Group, which has a significant presence in sectors such as steel, energy, infrastructure, cement and sports, among others.

JSW Energy Limited has a presence across the value chains of the power sector, with diversified assets in power generation and transmission.

JSW Energy began commercial operations in 2000, with the commissioning of its first 2x130 MW thermal power plants at Vijayanagar, Karnataka.

Since then, the company has steadily enhanced its power generation capacity from 260 MW to 7,189 MW having a portfolio of thermal 3,508 MW, wind 1,615 MW, hydel 1,391 MW and solar 675 MW.

The company is presently constructing various power projects to the tune of 2.6 GW.