JSW Energy Ltd. shares rose on Friday after it announced the acquisition of an under-construction hydro project in Himachal Pradesh and a strategic demerger leading to the acquisition of GE Power India Ltd.'s boiler manufacturing unit.
Subsidiary JSW Neo Energy Ltd. will acquire Tidong Power Generation Pvt. Ltd. from Norwegian state-owned company Statkraft Group for an enterprise value of Rs 1,728 crore. The portfolio consists of a 150 MW under-construction hydro project located in Himachal Pradesh, according to a stock exchange filing on Thursday.
The proposed acquisition is expected to be completed on or before Jan. 15, 2026, subject to the fulfillment of the conditions under the definitive agreements.
The acquisition would help JSW Energy in achieving its renewable-led capacity growth target of 30 GW by 2030, the company said.
Boiler Business
JSW Energy also announced a share-swap arrangement with GE Power India Ltd. for the demerger of the latter's business related to power boilers and related components to JSW Energy.
GE Power India will demerge its boiler manufacturing facility in Durgapur to JSW Energy. In exchange, the JSW entity will issue 10 equity shares for every 139 shares held by GEPIL shareholders.
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 assets, 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, the company added.
JSW Energy Share Price Movement
JSW Energy share price advanced over 2.6% intraday to Rs 552 apiece.
JSW Energy share price advanced over 2.6% intraday to Rs 552 apiece.
JSW Energy share price advanced over 2.6% intraday to Rs 552 apiece. The benchmark NSE Nifty 50 was down 0.4%. The total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was at 60.
The stock has fallen 26% in the last 12 months and 15% on a year-to-date basis.
Ten out of the 17 analysts tracking JSW Energy have a 'buy' rating on the stock, two recommend a 'hold', and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target implies a potential upside of 11%.
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