Khaitan & Co has guided JSW Energy on its fundraise worth INR 4,000 crore through Qualified Institutional Placement (QIP), marking the company’s second equity raise since its listing in 2010. Jefferies India acted as the sole Book Running Lead Manager on the transaction. Shardul Amarchand Mangaldas & Co. and Linklaters Singapore acted as Indian and International legal counsels to the BRLMs.
The Finance Committee of the Board approved the allotment of 7,61,90,476 equity shares of face value INR 10 each at an issue price of INR 525 per share, including a discount of INR 9.05 per share (1.69 percent of the floor price), at a premium of INR 515 per share, aggregating to INR 39,99,99,99,900.
Two allottees received more than 5 percent of the issue: SBI Equity Hybrid Fund was allotted 3,68,92,990 shares (48.42 percent of the total issue size) and GQG Partners Emerging Markets Equity Fund was allotted 1,83,87,066 shares (24.13 percent of the total issue size). Other participants included BlackRock and leading insurance companies.
Pursuant to the allotment, the paid-up equity share capital of the company stands increased from INR 17,57,29,22,600 comprising 1,75,72,92,260 equity shares to INR 18,33,48,27,360 comprising 1,83,34,82,736 equity shares.
The proceeds from the QIP, combined with the recent preferential allotment to promoters and the monetisation of JSW Steel shares (gross proceeds of INR 3,150 crore), are aimed at reducing net leverage and strengthening the company’s balance sheet.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: “With this raise, we are now well-capitalised to pursue our Strategy 3.0 with agility – expanding across renewable, thermal, and energy storage platforms, and delivering on our ambition of becoming one of India’s most transformative energy companies”
JSW Energy has a total locked-in generation capacity of 32.1 GW, comprising 13.7 GW operational and 13.8 GW under construction, with an additional pipeline of 4.6 GW. The company also holds 29.6 GWh of locked-in energy storage capacity and aims to reach 30 GW of generation capacity and 40 GWh of energy storage by 2030.
Prabhakaran Chandrasekaran, CFO of JSW Energy, said: “The capital raise is aimed at securing the Company’s growth in a financially prudent manner to enable it to pursue its aspirations across business cycles. The proceeds of the above issue strengthen our capital structure – enabling de-leveraging and improving our bottom line. This capital raise ensures our ambition is backed by a well-capitalised balance sheet, keeping us firmly on track to reach our target net leverage of less than 5x by 2030.”
Linklaters’ deal team was led by Amit Singh, supported by Joseph Wolpin and Utkarsh Mishra.
