JSW Energy, helmed by Sajjan Jindal, has announced plans to raise Rs 5,000 crore through a share sale to high net worth investors. The company disclosed its intentions via a filing with the stock exchange on April 2. The proposed fundraise will be conducted through a qualified institutional placement (QIP) programme.
JSW Energy stated in its filing, "A Qualified Institutions Placement of equity shares with face value of Rs 10 each under the provisions of Chapter VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, to the eligible investors for an aggregate amount not exceeding Rs 5,000 crore in one or more tranches subject to such regulatory/statutory approvals as may be required."
While finer details including the exact timing, pricing, and specific details of the QIP are yet to be finalised, the company's board has empowered its finance committee to make necessary decisions in this regard.
JSW Energy's promoters currently hold a substantial 73.38 per cent stake in the company as of the December 2023 quarter.
A QIP serves as a mechanism for companies to raise funds by issuing shares to eligible institutional bidders. Notably, JSW Energy did not delineate the precise projects for which it intends to allocate the raised capital.
Despite the lack of detailed project allocation, the company's financial performance has been robust. In the third quarter, it reported a notable 24.36 per cent year-on-year increase in consolidated net profit, attributed largely to strong performances from its thermal portfolio and merchant sales. Revenue for the quarter rose by 13.3 per cent year-on-year to Rs 2,661.41 crore.
The announcement buoyed investor sentiment, with JSW Energy's stock closing over 4 per cent higher at Rs 542 on the National Stock Exchange (NSE) on April 2.