TPG, Tepco, and Brookfield equity investors are currently engaged in advanced discussions to acquire a minority stake, in JSW Neo Energy. The purpose of this investment is to secure funding of $500 million for the expansion of energy ventures. Recently JSW Neo Energy completed the acquisition of 1.75 GW of energy capacity from Mytrah Energy. This acquisition significantly bolstered JSW Energy’s capacity to 6.56 GW as it strives towards its goal of achieving 20 GW by the year 2030. The Indian renewable energy sector has garnered interest from investors due, to its growing potential.
According to a recent newspaper report, private equity investors TPG, Tokyo Electric Power Company (Tepco), and Brookfield are currently engaged in advanced discussions regarding the acquisition of a minority stake in JSW Neo Energy.
This subsidiary belongs to the publicly-listed JSW Energy, and sources suggest that finalizing deals with two of these investment firms is on the horizon in the coming weeks.
The overarching objective of the JSW Group is to generate up to $500 million through this stake sale, which will subsequently be channeled into bolstering its footprint within the renewable energy sector. JSW Neo Energy is slated to serve as the platform for consolidating the forthcoming renewable ventures by the JSW Group.
JSW Energy has laid out plans to transfer its existing hydro energy projects into subsidiaries operating under JSW Neo Energy. This strategic maneuver is aimed at streamlining its renewable portfolio, establishing an efficient fundraising framework, and delivering enhanced value to its shareholders, as detailed in the report.
Notably, US private equity firm TPG, which already boasts investments in India, such as BookMyShow and Dream11, previously injected $1 billion into Tata Motors via its Rise Climate fund.
Meanwhile, Tepco holds a stake in ReNew Power through its partnership with Chubu Electric Power Co.
On the Canadian front, Brookfield Asset Management is actively pursuing opportunities to expand its renewable energy portfolio in India. These investments underscore the allure of the Indian renewable energy sector for global investors.
It’s worth highlighting that JSW Neo Energy recently completed a substantial acquisition, securing 1.75 GW of renewable energy generation capacity from Mytrah Energy for a sum of Rs 10,530 crore. This acquisition encompasses a wind energy capacity of 1.33 GW and a solar energy capacity of 422 MW, primarily situated in southern, western, and central India.
Furthermore, this acquisition stands as the largest undertaken by JSW Energy since its inception and has propelled the company’s operational capacity by more than 36 percent. This surge elevates its total capacity from 4.81 GW to an impressive 6.56 GW.
JSW Energy has set ambitious goals for its operational power generation capacity, aiming to reach 10 GW by 2025 and an even more ambitious 20 GW by 2030. These objectives underscore the company’s steadfast commitment to expanding its presence within the renewable energy sector.
