JSW Energy to raise ₹5,000 cr via QIP; share hits 52-week high

Shares of JSW Energy Ltd hit a one-year high today as the company's board approved raising of up to ₹5,000 crore via a QIP (qualified institutional placement) route in one or more tranches.

The scrip opened a gap down today but soon hit a 52-week high at ₹543.80 on the BSE, taking the company's m-cap to ₹89,133.20 crore.

In a stock exchange filing, JSW Energy says: "The Board of Directors has approved a qualified institution's placement of equity shares with a face value of ₹10 each to the eligible investors for an aggregate amount not exceeding ₹5,000 crore."

The Board has authorised the Finance Committee to take all the necessary decisions in this regard.

The share of JSW Energy has been a multi-bagger in the past year, rising around 116% during the period.

The scrip has seen a 3.14% rise in the past week; 4.86% in the past month; 22.46% in the past six months; and 32.18% in the year-to-date period.

JSW Energy had reported EBITDA of ₹1,229 crore, up 69 YoY, resulting in a reported PAT of ₹231 crore, up 29% YoY, in Q3 FY24. The company's cash PAT stood at ₹628 crore in Q3 FY24. The company's cash PAT stood at ₹628 crore during the quarter, implying 20% cash returns on adjusted net worth.

The consolidated net worth and net debt as of December 31, 2023, were ₹20,796 crore and ₹26,286 crore, respectively, resulting in a net debt-to-equity ration of 1.3x. The net debt to EBITDA stood at 4.6x, with net debt to EBITDA at a healthy 3.2x. Liquidity of the company stood at ₹2,867 crore as of December 31, 2023.

JSW Energy's current 9.8 GW capacity comprises 3.8 GW of thermal capacity (including merchant), 3.6 GW of wind, 0.6 GW of solar & 1.6 GW of hydro. Over the period FY23 to FY30, it is expected to add another 10.2 GW of RE projects at an estimated capex of ₹74,000 crore. Apart from power generation, the company has also forayed into the new age business of green hydrogen and derivatives and solar module manufacturing with capacities of 3,800 TPA and 1 GW, respectively.

“Going ahead, we expect the company’s revenue to reach ~₹18,700 cr. (at 21.9% CAGR) on the back of 12.3 GW of capacity coming up by FY26. The EBITDA is expected to grow 3.5x to ₹10,667 cr. with the optimization of acquired RE assets (Mytrah) and an increased mix of high-margin merchant demand. As a result, EBITDA margins are expected to enhance to 57.1% by FY26 from 31.8% clocked in FY23,” brokerage Ventura Securities says in its coverage of the JSW Energy stock.