JSW Energy raises ₹5,000 cr QIP to accelerate growth plans

livemint.com:

₹5,000 crore through the qualified institutions placement (QIP) to accelerate its growth plans. In a late regulatory filing, the company disclosed that it will use the proceeds of the QIP for the prepayment of its debt and to invest in its renewable arm, JSW Neo Energy.

Also Read: Why JSW Energy’s equity dilution move at the parent level makes sense The issue was opened by the power vertical of the group on 2 April 2024 and closed on 5 April after its board approved the allotment of 10,30,92,783 equity shares to 97 qualified institutional buyers at the issue price of ₹485 per equity shares, a discount of 4.92% to the floor price. The company further said that out of the ₹5,000 crore proceeds, it plans to use ₹3,139 crore towards prepayment of debt, while ₹611 crore will be used towards investment in Neo Energy, and the rest for general corporate purposes.

“The proceeds from the QIP will bolster an already strong capital structure even further, significantly enhance our financial flexibility, and enable us to accelerate our ambitious growth plans," said Pritesh Vinay, director (finance) and CFO of JSW Energy. The issue, the company added, garnered a strong interest from marquee global long-only investors, domestic mutual funds, and insurance companies.

“The QIP witnessed an overwhelming response resulting in over 3.2 times subscription," it added in the filing. “The strong institutional investor interest reflects their unwavering confidence in our positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives.