JSW Energy shares jump 7% after winning bid for KSK Mahanadi Power plant

JSW Energy shares surged 7 per cent on January 14, trading at Rs 548.10 on the NSE, after the company secured a Letter of Intent (LoI) for the acquisition of KSK Mahanadi Power Company.

The acquisition aligns with JSW Energy’s ambitious target of achieving 20 GW capacity well ahead of 2030.

KSK Mahanadi Power, currently under insolvency proceedings, operates a 3,600 MW thermal power plant in Chhattisgarh. Presently, 1,800 MW (three units of 600 MW each) operates at 95 per cent capacity utilization under long- and medium-term power purchase agreements.

The remaining 1,800 MW is under construction, with one unit 40 per cent complete and the remaining infrastructure already in place.

Regulatory clearances pending

The LoI issuance follows approval from the Committee of Creditors, with the transaction awaiting regulatory nods from the National Company Law Tribunal and the Competition Commission of India. JSW Energy Joint Managing Director and CEO Sharad Mahendra expressed confidence in the deal, stating, "This strategic initiative enhances our ability to meet the growing energy demands of our nation by leveraging a diversified energy portfolio that includes both conventional and renewable sources."

Relief for creditors and portfolio growth

The acquisition also brings relief to creditors REC and Power Finance Corporation, both of which were exposed to the bankrupt company. Shares of the two state-owned lenders rose 5 per cent each on the back of the resolution.

Post-acquisition, JSW Energy’s total thermal generation capacity will rise to 7.5 GW, enhancing its total committed generation portfolio to 28.2 GW across thermal and renewable sources.

Strong push toward long-term goals

The acquisition positions JSW Energy to capitalize on the growing energy demand and furthers its aim of expanding capacity sustainably. Analysts see this development as a significant step in boosting operational efficiency and diversifying energy sources, keeping the company well-poised for long-term growth.

With robust plans and a focus on clean energy, JSW Energy remains a key player in India’s power sector transformation.