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JSW Neo Energy To Acquire 1,753-MW Renewable Assets from Mytrah for Rs 10,530 Crore

JSW Energy on Wednesday said its wholly-owned subsidiary JSW Neo Energy will acquire a portfolio of 1,753 megwatts (MW) of renewable energy generation capacity from Mytrah Energy India for Rs 10,530 crore. The deal, comprising 17 special purpose vehicles (SPVs) and one ancillary SPV, is subject to the Competition Commission of India’s (CCI) nod and other customary approvals.

“The transaction values the Mytrah Energy portfolio at an enterprise valuation of approximately Rs 10,530 crore, after adjusting for net current assets. The Mytrah Portfolio consists of 10 wind SPVs with a generation capacity of 1,331 MW and 7 solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of 18 years,” JSW Energy said in a statement.

It also said necessary definitive agreements have been signed between the parties.

The company said it is the largest acquisition made by JSW Energy since its inception, and will leapfrog the current operational generation capacity by over 35 per cent, from 4,784 MW to 6,537 MW. Moreover, with about 2,500 MW of under-construction wind and hydro projects, which are likely to be commissioned in phases over the next 18-24 months, JSW Energy platform capacity gets enhanced to 9.1 GW – where the share of renewables increases to about 65 per cent.

Further, this is likely to help the company achieve its renewable-led capacity growth target of 10 GW by FY25, well ahead of timelines.

Prashant Jain, joint managing director and CEO of JSW Energy, said: “We are excited to acquire Mytrah’s 1.75 GW of renewable energy portfolio which is value accretive to our shareholders on day one. This landmark deal demonstrates our strong commitment to achieve our vision of achieving 10 GW capacity by 2025 and being a leading player in India’s Energy Transition. This acquisition further strengthens and diversifies our operating footprint across various key resource rich states.”

He added that by leveraging strong industry, operating and financing expertise, the company would be able to significantly improve the operating performance of this entire portfolio, which will ultimately create tremendous value to the shareholders. “JSW Energy will continue to look for more such opportunities for value accretive acquisition to aid its already ambitious growth plans for this sector.”

Pritesh Vinay, director (finance) and CFO of JSW Energy, said, “The acquisition of Mytrah’s portfolio by JSW Energy is significantly value accretive and consistent with our long track record of being prudent in capital allocation and focusing on high cash returns. This is a very attractive acquisition – both from ‘Build vs Buy’ trade-off as well as relative value when compared to all acquisitions in this space in recent times.”

He added that the company has a multipronged asset optimisation, performance improvement and capital structure optimisation plan over the next 12-24 months, which will drive significant value creation over the life of the assets. “Moreover, the balance sheet headroom even after consummating this large acquisition will give us the leeway to continue to pursue our growth ambitions.”

JSW Energy has set an ambitious target for a 50 per cent reduction in its carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy. The company has set a target to reach 20 GW capacity by 2030, with the share of renewable energy increasing to 85 per cent.