JSW Group plans minority stake sale in JSW Neo Energy
POWER & RENEWABLE ENERGY

JSW Group plans minority stake sale in JSW Neo Energy

According to sources familiar with the matter, the JSW Group is planning to sell a minority stake in JSW Neo Energy, a subsidiary of JSW Energy that is listed on the stock exchange. The objective of this move is to raise up to $500 million. The conglomerate, which is involved in the steel and energy sectors, has chosen Standard Chartered Bank as the sell-side advisor for the transaction. The discussions are currently private, and one of the interested bidders is TPG's The Rise Fund, known for its investments in clean energy companies. Notably, the fund had previously invested $1 billion in Tata Motors' electric vehicles arm.

The funds raised from this initiative will be utilised to expand JSW Neo Energy's presence in the renewable energy sector, as mentioned by the aforementioned sources. When approached for comments, a spokesperson for JSW Energy declined to provide any information. Email inquiries sent to Standard Chartered and TPG were unanswered at the time of publication. It's worth noting that energy companies in general are actively seeking investments for their green energy businesses.

Reports suggest that Aditya Birla Group is also exploring options to sell up to a 49 per cent stake in its renewable energy business, aiming to raise around $400 million. Standard Chartered has been engaged as the investment banker for this potential deal as well. Additionally, the board of Adani Green Energy is expected to convene soon to discuss a proposal to raise between $750 million and $1 billion through a stake sale, according to an earlier report.

JSW Neo Energy will serve as the umbrella entity for JSW Energy's renewable energy projects, encompassing generation, energy storage, and green hydrogen. The company had previously stated that all operational hydro energy projects and upcoming renewable energy projects would be housed in subsidiaries under JSW Neo Energy.

This strategic move will assist JSW Energy in consolidating and optimizing its renewable energy portfolio while establishing an efficient holding structure for fundraising and creating value for shareholders. Recently, JSW Neo Energy completed the acquisition of Mytrah Energy's renewable energy generation capacity, adding 1.75 gigawatts to its portfolio. The acquisition included 1.33 gigawatts of wind energy capacity and 422 megawatts of solar energy capacity, primarily located in the southern, western, and central parts of India. This deal marked the largest acquisition by JSW Energy to date, raising its operational capacity by over 36 per cent from 4.81 gigawatts to 6.56 gigawatts. The company has set a target of achieving 10 gigawatts of operational power generation capacity by 2025 and 20 gigawatts by 2030. Prashant Jain, joint managing director of JSW Energy, previously mentioned in an interview that the company was considering the possibility of taking JSW Neo public.

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According to sources familiar with the matter, the JSW Group is planning to sell a minority stake in JSW Neo Energy, a subsidiary of JSW Energy that is listed on the stock exchange. The objective of this move is to raise up to $500 million. The conglomerate, which is involved in the steel and energy sectors, has chosen Standard Chartered Bank as the sell-side advisor for the transaction. The discussions are currently private, and one of the interested bidders is TPG's The Rise Fund, known for its investments in clean energy companies. Notably, the fund had previously invested $1 billion in Tata Motors' electric vehicles arm. The funds raised from this initiative will be utilised to expand JSW Neo Energy's presence in the renewable energy sector, as mentioned by the aforementioned sources. When approached for comments, a spokesperson for JSW Energy declined to provide any information. Email inquiries sent to Standard Chartered and TPG were unanswered at the time of publication. It's worth noting that energy companies in general are actively seeking investments for their green energy businesses. Reports suggest that Aditya Birla Group is also exploring options to sell up to a 49 per cent stake in its renewable energy business, aiming to raise around $400 million. Standard Chartered has been engaged as the investment banker for this potential deal as well. Additionally, the board of Adani Green Energy is expected to convene soon to discuss a proposal to raise between $750 million and $1 billion through a stake sale, according to an earlier report. JSW Neo Energy will serve as the umbrella entity for JSW Energy's renewable energy projects, encompassing generation, energy storage, and green hydrogen. The company had previously stated that all operational hydro energy projects and upcoming renewable energy projects would be housed in subsidiaries under JSW Neo Energy. This strategic move will assist JSW Energy in consolidating and optimizing its renewable energy portfolio while establishing an efficient holding structure for fundraising and creating value for shareholders. Recently, JSW Neo Energy completed the acquisition of Mytrah Energy's renewable energy generation capacity, adding 1.75 gigawatts to its portfolio. The acquisition included 1.33 gigawatts of wind energy capacity and 422 megawatts of solar energy capacity, primarily located in the southern, western, and central parts of India. This deal marked the largest acquisition by JSW Energy to date, raising its operational capacity by over 36 per cent from 4.81 gigawatts to 6.56 gigawatts. The company has set a target of achieving 10 gigawatts of operational power generation capacity by 2025 and 20 gigawatts by 2030. Prashant Jain, joint managing director of JSW Energy, previously mentioned in an interview that the company was considering the possibility of taking JSW Neo public. Also Read India proposes global standards for low-carbon hydrogen at G20Adani Green Energy to Seek $1 Billion in Funding

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