JSW Energy, the holding company of JSW Group's power business, will acquire the boiler manufacturing unit of GE Power India (GEPIL) through a strategic demerger, in order to enhance its thermal power business, the company said in an exchange filing, sending the shares modestly higher in a weak market on September 19.
The deal will be a share-swap arrangement that will see GEPIL demerge its boiler manufacturing facility in Durgapur to JSW Energy, and the JSW entity will issue 10 equity shares for every 139 shares held by GEPIL shareholders. The appointed date for the scheme of demerger is July 1, 2025.
JSW-GEPIL Deal Rationale
The demerger scheme will help JSW Energy in 'vertical integration' through a dedicated boiler manufacturing facility, reducing dependency on third-party suppliers, and leading to economies of scale, the company said.
The deal will lead to "cost efficiencies, and improving control over critical component requirements of thermal power asset enabling increased production capacity...," said JSW Energy. The move supports future thermal projects of JSW Energy and aligns with the longer term vision of expanding into the energy portfolio, creating value for shareholders, JSW Energy added.
Brokerages Bullish
Jefferies has issued a Buy call on JSW Energy and said that the management is anticipating 4.4-4.9 GW power capacity addition in FY26 as against the estimate of 3.1 GW. Morgan Stanley has a Overweight call on JSW Energy wit a target of Rs 659/share.
Shares of JSW Energy are higher by 1.5 percent in early trade on September 19.
Tidong Power Deal
In a separate development, JSW Neo Energy, a wholly owned subsidiary of JSW Energy, is acquiring Tidong Power Generation from Statkraft Holding with a 150 MW under construction hydro-power project, helping the company achieve renewable capacity growth target of 30 GW by FY30. The acquisition is expected to be completed by January 15, 2026. The deal is being agreed upon at an enterprise value of Rs 1,728 crore.
"This acquisition further strengthens our position as the largest private hydro power player in India and reinforces our
commitment to support India’s power sector. We are confident of completing the construction in a timely manner," Sharad Mahendra, Joint Managing Director and CEO of JSW Energy said. This will be the fourth hydro asset for JSW Energy and a 'significant addition' to its hydel portfolio in Himachal Pradesh, the company added.
Domestic Power Capacity
India’s total installed power capacity has reached 485 GW, with 19.9 GW added in Q1FY26 alone. This addition has taken India's clean energy capacity to 50%, achieving its Paris Agreement target five years ahead of schedule, with non-fossil fuel capacity of 243 GW. The year FY25 saw an emerging trend of state distribution companies increasingly bidding for thermal power procurement, which JSW Energy said is expected to continue in FY26.
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