JSW Energy shares halt 5-day rally after block deal

Power generator company JSW Energy's shares suffered sharp losses on Thursday, halting a five-day winning run, after its promoter JSW Investments trimmed its stake in the firm for Rs 717.6 crore through large deals. JSW Energy shares slumped by as much as Rs 14 — or 3.8 per cent — to Rs 354.1 apiece on BSE. The JSW Energy stock had surged 26.5 per cent in the past five back-to-back sessions.  

JSW Investments sold a total of 2.1 crore shares — or 1.28 per cent of the company's equity — through the transaction. GQG Partners, Washington State Investment Board, AustralianSuper, Reliance Trust Institutional Retirement Trust Series Twelve, Witan Investment Trust Plc and Alliance Trust Plc were among the buyers.

US-based investment firm GQG purchased 1.67 crore JSW Energy shares — a 1.02 per cent stake in the company — for Rs 571 crore, according to block deals data. 

The transaction took place at Rs 341.7 apiece, marking a discount of one per cent to the closing price of JSW Energy shares on Monday. Domestic financial markets remained shut on Tuesday for Independence Day. 

After the transaction, the shareholding of JSW Investments in JSW Energy stood at 18.95 per cent. At the end of the April-June period, the promoter's stake in JSW Energy was at 20.22 per cent. Read more on the JSW Energy block deal

On Monday, GQG Partners Emerging Markets Equity Fund had acquired 1.19 crore JSW Energy shares for Rs 411 crore.

JSW Energy results

Last month, the private sector power generation and transmission company, JSW Energy, reported a consolidated net profit of Rs 290.3 crore for the quarter ended June 30, as against a net profit of Rs 554.7 crore for the corresponding period a year ago including an exceptional item gain of Rs 120 crore.  

Its revenue declined 3.3 per cent on a year-on-year basis to Rs 2,927.9 crore for the first quarter of the current financial year, according to a regulatory filing.

The company registered a 19.6 per cent increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to Rs 1,222.1 crore for the June quarter, and its margin improved by 800 basis points to 41.7 per cent.

With inputs from agencies

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