Shares of JSW Energy were shooting up over 6% on Monday amid reports that the company was exploring a stake sale to a number of global suitors.
What Happened: JSW Energy is in advanced negotiations with private equity firms including TPG, Tokyo Electric Power Company (Tepco), and Brookfield to sell a minority stake in its subsidiary, JSW Neo Energy, sources told Economic Times.
The sources added that JSW Neo Energy could soon reach an agreement with two of these investment firms. This move aligns with JSW Group’s objective to secure up to $500 million (₹4,150 crore) in funds through this stake sale, which would be earmarked for further expansion within the realm of renewable energy.
Ready To Rumble: JSW Neo Energy is positioned to serve as the dedicated entity for JSW Energy’s upcoming initiatives in renewable energy in the domains of energy generation, storage, and the production of green hydrogen.
JSW Energy has outlined plans to reorganize its existing hydro energy projects, effectively placing them under subsidiaries operating within the JSW Neo Energy umbrella. This strategic reorganization aims to bolster the efficiency of the company’s renewables portfolio and facilitate a streamlined structure conducive to fundraising and enhanced value realisation for shareholders.
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Notably, TPG, a US-based private equity fund with a significant presence in India and investments in firms like BookMyShow and Dream11, previously extended a substantial investment of $1 billion (₹8,300 crore) to Tata Motors through its Rise Climate fund.
Price Action: JSW Energy’s share price was up 6.2% to ₹419.15 in early trade on Monday.
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