Shares of JSW Energy were gaining on Wednesday as the firm revealed plans to raise ₹5,000 crore through a placement of shares.

What Happened: JSW Energy, spearheaded by billionaire Sajjan Jindal, unveiled plans on Tuesday to bolster its financial footing through a qualified institutional placement (QIP) program, aiming to raise a substantial ₹5,000 crore.

This fundraising initiative entails offering shares to qualified institutional buyers, with the company targeting high-net-worth investors across one or more transactions.

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A QIP serves as a means for companies to garner capital by issuing shares to large institutional investors. JSW Energy disclosed that the share placement would occur in one or multiple phases, with a floor price set at ₹510.09 per share, representing a 6% discount compared to the company’s last closing price of ₹540.20.

With a robust presence spanning power generation and transmission, JSW Energy has steadily expanded its capacity over the years, growing from 260 megawatts to an impressive 7,189 megawatts. This capacity encompasses various sources including thermal, wind, hydel and solar, ensuring a diversified portfolio across geographic regions and fuel types.

Despite outlining plans for capital infusion, JSW Energy did not elaborate on the specific utilisation of the proceeds.

What Happened: JSW Energy’s share price was up 1.33% at ₹549.40 near the start of trade amid broader risk-off sentiment.

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