Why This Sajjan Jindal-Owned Stock Is Gaining Amid The Gloom In Markets Today

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.

See Also: Byju’s Staff Left Guessing As They Get Laid Off Over Phone Calls Amid Edtech Firm’s Financial Woes

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.

Read Next: Why Paytm Shares Bumped Up Sharply Late On Tuesday

Market News and Data brought to you by Benzinga APIs

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesLarge CapNewsMarketsMoversTrading IdeasJSW Energy