JSW Energy completes acquisition of Mytrah Energy's renewable energy assets

JSW Energy Ltd's subsidiary has completed the acquisition of Mytrah's renewable assets

JSW Neo Energy Limited (JSW Neo), a wholly-owned subsidiary of JSW Energy Limited, has completed the acquisition of 1,753 megawatts (MW) of renewable energy assets from Mytrah Energy (India) Private Limited (MEIPL), the company said in a BSE filing on March 29.

This includes the acquisition of 15 special purpose vehicles (SPVs) and 13 ancillary SPVs having 1,449 MW of total installed renewable energy capacity.

"The said 28 subsidiaries of MEIPL have now become subsidiaries of JSW Neo and accordingly step-down subsidiaries of JSW Energy Ltd, the company said.

The Mytrah portfolio of 1,753 MW comprises of 1,331 MW of wind capacity and 422 MW (487 MWp DC) of solar capacity operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of approximately 17 years.

The transaction values the Mytrah Energy portfolio at an enterprise valuation of approximately Rs 10,150 crore, after adjusting for net current assets and other adjustments under the share purchase agreements.

This is the largest acquisition made by JSW Energy since its inception, and will leapfrog the current operational capacity by over 36 percent from 4,811 MW to 6,564 MW.

Sajjan Jindal, CMD, JSW Energy, said, "I am very proud to announce the completion of 1.75 GW renewable energy assets acquisition of Mytrah. This takes us a step closer to our vision of expanding our green energy portfolio and becoming a significant player in this space by 2025."

In an interview with Moneycontrol on January 24, Prashant Jain, Joint Managing Director and CEO of JSW Energy said the acquisition was delayed as there were 17 lenders from which the company had to take approvals. "Each lender has to go to its board which sometimes takes time," he had said.

KPMG India Services LLP were the transaction advisor to the company, while Khaitan & Co. were the legal advisors and PricewaterhouseCoopers Services LLP carried out financial and tax due diligence.

Jain said this acquisition further strengthens and diversifies the company's operating footprint across various key resource rich states, increasing optionality to grow the portfolio further. "We are confident to significantly improve the operating performance of the Mytrah portfolio by implementing a comprehensive asset optimisation and performance improvement plan by leveraging our operating and financing expertise. The acquisition would help JSW Energy Ltd. in advancing towards its capacity target of 10 GW by FY 2025, well ahead of time.”

The company has set a target to reach 20 GW capacity by 2030 and near-term target of 10 GW by 2025. With the acquisition of Mytrah RE Assets the total locked-in capacity stands at 9.9 GW of which total renewable capacity stands at ~6.0 GW. JSW Energy has set an ambitious target for a 50 percent reduction in its carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy.

"With about 2.9 GW of under-construction projects which are likely to be commissioned in phases over the next 12-18 months, JSW Energy is well ahead of its target to reach 10GW operating company by FY2025 with the share of renewables increasing to ~61 percent. Closure of this deal demonstrates the company’s unique ability to swiftly acquire large, complex portfolios that can add significant value to its shareholders," the company later said in a statement.