JSW Energy to finalise recast plan by December: CEO

JSW Energy to finalise recast plan by December: CEO

Sajjan Jindal-led JSW Energy aims to finalise a scheme of arrangement to recast its business to split it into two– renewable and thermal– in a “few weeks”, Prashant Jain, joint managing director and chief executive officer told ET.

The company’s board has granted an in-principle approval for evaluations of options for re-organizing the company’s green (renewable) energy and grey (thermal) businesses. The company has around 1,400 megawatts (mw) of renewable energy and 3,158 mw of thermal power capacity.

“We will be organizing it in two separate verticals so that different investors with different thought processes can invest in these businesses and value unlocking can be done. We may look at strategic investors and this would help us explore an initial public offer over a period of time,” Jain said.

JSW Energy plans to scale up its total capacity to 20 gigawatts (gw) with a total investment of Rs 75,000 crore by financial year 2029-30 from a little over 4.5 gw now, driven by renewable energy.

Jain said that the scheme of arrangement could be presented to the board before the end of the December quarter and then the company will seek approvals from different stakeholders.

On Friday, JSW Energy said that in the second quarter of 2021-22, its profit after tax (adjusting for exceptional finance cost) was Rs 414 crore as against Rs 352 crore in the same quarter a year ago. Total revenue was up 12% year-on-year Rs 2,237 crore, primarily due to an increase in short term sales and higher other income.

JSW Energy runs its power plants almost entirely on international coal but despite the steep increase in the prices of the international coal, it was not impacted as coal prices are a pass through in its power purchase contracts and it sourced primarily from long term contracts, which were unaffected by the price rise.

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