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JSW Energy announced on Wednesday that its unit JSW Neo Energy has agreed to buy some renewable energy capacity from Mytrah Energy (India) for about 10,531 crore. It has agreed to acquire a portfolio of 1,753 MW of Renewable Energy generation capacity from Mytrah Energy comprising of 17 SPVs and 1 Ancillary SPV. 

JSW Energy informed that necessary definitive agreements have been signed between the parties and the transaction is subject to receipt of the necessary regulatory and other customary approvals. The transaction values the Mytrah Energy portfolio at an Enterprise Valuation of approximately 10,530 crore, after adjusting for net current assets.

"Upon consummation of the transaction, the said 18 subsidiaries of Mytrah Energy (India) Private Limited (MEIPL) would become subsidiaries of JSW Neo Energy Limited (JSWNEL) and step-down subsidiaries of the company," the company said.

The company has set a target to reach 10 GW capacity by FY 2025 and 20 GW capacity by FY 2030, with the share of renewable energy increasing to 85% by FY 2030.

The renewable assets under this transaction will be acquired by JSW Neo Energy Limited, a wholly owned subsidiary of the Company. The acquisition would help the Company in achieving its renewable-led capacity growth target of 10 GW by FY 2025, well ahead of time.

Approval from the Competition Commission of India (CCI) and lenders for the acquisition are required. The transaction is expected to be completed by 15th November, 2022 subject to fulfilment of Conditions Precedent set out in SPA.

“The Mytrah Portfolio consists of 10 Wind SPVs with a generation capacity of 1,331 MW and 7 Solar SPVs with a generation capacity of 422 MW (487 MWp DC), operating primarily in the southern, western and central parts of India. The assets have a proven operational track record and long-term PPA with an average remaining life of ~18 years," JSW Energy added.

This is the largest acquisition made by JSW Energy since inception, and will leapfrog the current operational generation capacity by over 35% - from 4,784 MW to 6,537 MW.

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