JSW Energy Shares Rise Most In Two Months After Largest Acquisition Bags Analysts' Thumbs Up

Shares of JSW Energy Ltd. saw their best session since Oct. 29 after its unit signed Rs 12,468 crore to acquire various companies in the energy management and clean energy systems space.

JSW Neo Energy Ltd. signed definitive agreements to acquire 100% interest in O2 Power Midco Holdings Pte. and O2 Energy SG Pte., as well as their subsidiaries. All of the target companies have a consolidated operational and under construction/development renewable energy portfolio of 4.7 GW in India.

The acquisition is set to unlock nearly Rs 10,000 crore in value, according to Motilal Oswal. The brokerage views this move "positively" and expects up to Rs 57 per share value unlocking upon deal completion.

The brokerage maintained a 'buy' on JSW Energy with a target price of Rs 810 target, implying a potential upside of 29% from the previous close.

According to the company, the acquisition “will leapfrog” its locked-in generation capacity by 23% — from 20,012 megawatts to 24,708 MW. The company said that it expects to complete the proposed acquisition by May 26, 2025. However, the filing added that the transaction is subject to receipt of the necessary regulatory and other customary approvals.

JSW Energy's stock rose as much as 7.7% during the day to Rs 674 apiece on the NSE. It was trading 5.09% higher at Rs 657.7 apiece, compared to a 0.41% decline in the benchmark Nifty 50 as of 09:43 a.m.

It has risen 60% during the last 12 months. The total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 45.

Seven out of the 12 analysts tracking the company have a 'buy' rating on the stock, three suggest a 'hold' and two have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 5%.