Shares of JSW Energy surged 7% on January 14 after the company received a Letter of Intent (LoI) to acquire KSK Mahanadi Power Company, which is currently undergoing insolvency proceedings. The acquisition involves a 3,600 MW thermal power plant located in Chhattisgarh, positioning JSW Energy for significant capacity growth. By 12:10 PM, the company’s shares were trading at ₹547.75 on the NSE.
The LoI follows approval from the Committee of Creditors and marks a critical step in the acquisition process. The transaction will be finalized upon receiving regulatory clearances from the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI).
KSK Mahanadi Power is currently operating 1,800 MW (three units of 600 MW each) at an impressive 95% capacity utilization under long- and medium-term power purchase agreements. The remaining 1,800 MW is under various stages of development. One of the units (600 MW) is 40% complete while the other two units (1,200 MW combined) already have supporting infrastructure-including provisions for water and coal transportation for the entire 3,600 MW capacity.
With this, JSW Energy increased its total committed thermal generation capacity to 7.5 GW and its overall generation portfolio to 28.2 GW. Altogether, putting the company way ahead of achieving its ambitious goal of reaching a capacity of 20 GW generations is way ahead of its target year of 2030.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy said in an exchange filing, “This strategic initiative enhances our ability to meet the growing energy demands of our nation by leveraging a diversified energy portfolio that includes both conventional and renewable sources.”
This development has also gone in favour of creditors like REC and Power Finance Corporation which were exposed to the debt of KSK Mahanadi Power. On the news, shares of both state-owned firms rose by 5% each as investors bet on the resolution of insolvency proceedings.
The acquisition of KSK Mahanadi Power by JSW Energy is expected to be one more vital step in consolidating its position in the energy sector of India, with a proper balance between conventional and renewable sources of generation.
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Source: Moneycontrol
