Company’s biggest deal, dominance in energy sector will increase

JSW Energy Ltd. JSW Neo, a subsidiary of JSW Neo, has announced the acquisition of renewable energy platform O2 Power. This acquisition is considered to be the biggest deal in the history of the company so far. This agreement was signed between O2 Power Midco Holdings Pte. and O2 Energy SG Pte. This will be done through acquisition. However, this deal will be finalized only after getting the approval of the Competition Commission of India (CCI). JSW Energy informed about the big move through an exchange filing on Friday.

Advantages of acquisition

This acquisition of JSW Energy will increase the total generation capacity of the company by 23%.

• Earlier capacity: 20,012 MW.
• Capacity after acquisition: 24,708 MW.

O2 Power’s projects are spread across seven major resource-rich states of India. This will give JSW Energy an opportunity to strengthen its presence in various states.

company statement

JSW Energy Managing Director and CEO Sharad Mahendra said:

“This acquisition is a milestone for us. This will further strengthen our position in India’s energy sector. O2 Power’s high-quality assets will help us expand our operations into key states.”

O2 Power: What is its specialty?

O2 Power is a leading renewable energy platform with a total capacity of 4,696 MW.

• Operational capacity (by June 2025): 2,259 MW.
• Projects under construction: 1,463 MW.
• Commissioned Capacity (by June 2027): 974 MW.

Properties:

• The average tariff rate of the platform is ₹3.37 per unit.
• The projects are operated with an estimated remaining life of 23 years.

O2 Power’s strong projects and efficient operations will position JSW Energy as a leader in the renewable energy sector.

Financial details of the deal

• Enterprise value of the deal: ₹12,468 crore.
• Net current assets will be adjusted in this.
• This acquisition will help JSW Energy strengthen its footprint in the renewable energy sector and become a major player in India’s energy sector.

JSW Energy shares and market performance

JSW Energy shares witnessed a 2% decline on Friday and closed at ₹625.80.

• Market Capital: ₹1,09,244 crore.
• Performance for the last 52 weeks:
  • Minimum level: ₹404.
  • Highest level: ₹804.90.

However, this big deal is likely to have a positive impact on the company’s shares in the future.

importance of acquisition

1. Expansion in energy production: JSW Energy increases capacity by 23%.
2. Supporting Sustainable Development: A major step towards becoming a leader in the renewable energy sector.
3. Public and corporate responsibility: A commitment to green energy.