JSW Energy stock climbs 8% on $1.47 billion deal to acquire O2 Power

JSW Energy shares jumped over 8 per cent on Monday, reaching an intraday high of Rs 674 on the NSE. The rally followed the announcement of a definitive agreement between JSW Neo, a subsidiary of JSW Energy, and O2 Power to acquire a 4,696 MW renewable energy platform for $1.47 billion.

Boost to renewable portfolio
The acquisition includes O2 Power Midco Holdings and O2 Energy SG, platforms jointly developed by EQT Infrastructure and Temasek. Once approved by the Competition Commission of India and other regulators, the deal will increase JSW Energy’s generation capacity from 20,012 MW to 24,708 MW, bolstering its renewable energy focus.

O2 Power currently operates 2,259 MW of renewable energy capacity, with an additional 1,463 MW under construction and 974 MW in the pipeline, slated for completion by June 2027. The assets span seven states with an average tariff of Rs 3.37 per kWh and an operational lifespan of approximately 23 years.

CEO’s outlook on acquisition
“This acquisition marks a significant milestone in JSW Energy’s journey. It strengthens our presence across key resource-rich states and aligns with our goal to expand our renewable energy portfolio. I am confident this move will deliver exceptional value to our stakeholders,” said Sharad Mahendra, CEO of JSW Energy.

Planned investments and future goals
The acquisition entails additional capital expenditure of Rs 13,000-14,000 crore to optimize the platform’s capacity. The deal will also enhance JSW Energy’s commercial and industrial (C&I) segment, adding 596 MW to achieve a post-acquisition total of 3,694 MW.

Market outlook
Motilal Oswal analysts valued JSW Energy’s core business at 15x its FY27 EBITDA, pegging the stock's target price at Rs 810. The deal adds strategic depth, aligning with the company’s vision to transition to a renewable-driven portfolio.

At 9:24 AM, JSW Energy shares were trading 6.39 per cent higher at Rs 665.8, outperforming the Nifty50, which dipped 0.14 per cent.