JSW Energy shares soar 7% after KSK Mahanadi power plant acquisition

JSW Energy's winning bid for KSK Mahanadi Power also brought relief to REC and Power Finance Corporation who were creditors to the bankrupt company.

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Shares of JSW Energy zoomed 7 percent on January 14 after the company received a Letter of Intent (LoI) for the acquisition of KSK Mahanadi Power Company, currently under insolvency proceedings. The power company owns a 3,600 MW thermal power plant, located in Chattisgarh.

At 11.34 am, shares of JSW Energy were trading at Rs 548.10 on the NSE.

The Letter of Intent (LoI) follows the approval by the Committee of Creditors, with the completion of the transaction contingent on receiving the necessary regulatory clearances from the National Company Law Tribunal and the Competition Commission of India.

Regarding KSK Mahanadi Power, the company currently operates 1,800 MW (three units of 600 MW each) at 95 percent capacity utilization under long- and medium-term power purchase agreements.

An additional 1,800 MW (three units of 600 MW each) is under construction. Of this, one unit (600 MW) is 40 percent complete, while the remaining 1,200 MW has the necessary infrastructure in place. The plant also has provisions for water and coal transportation to support the entire 3,600 MW capacity.

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This acquisition increases JSW Energy's total committed thermal generation capacity to 7.5 GW, bringing its total locked-in generation capacity to 28.2 GW. The development places JSW Energy on track to achieve its target of 20 GW well ahead of 2030.

"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," said JSW Energy Joint Managing Director and CEO Sharad Mahendra in an exchange filing.

JSW Energy's winning bid for KSK Mahanadi Power also brought relief to REC and Power Finance Corporation who were creditors to the bankrupt company. Buoyed by the development, shares of the two state-owned companies also surged 5 percent each.

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