After an eight-day losing streak, JSW Energy share price jumped 5 per cent in intraday trade on the BSE on Tuesday, January 14. JSW Energy share price opened at ₹528.15 against its previous close of ₹518.05 and rose 5.2 per cent to the level of ₹544.80. Around 10:10 AM, the stock traded 4.96 per cent up at ₹543.75.
Shares of JSW Energy gained a day after the company announced that the committee of creditors had approved its resolution plan for KSK Mahanadi Power Company Limited (KMPCL). In simple words, JSW Energy has acquired KSK Mahanadi Power Company under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016. The move boosts Sajjan Jindal-led JSW Energy's total thermal generation capacity.
"We wish to inform you that the resolution plan submitted by the company for KSK Mahanadi Power Company Limited under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016, has been approved by the committee of creditors, and the company has received a letter of intent from the resolution professional on 13 January 2025," JSW Energy said in an exchange filing post-market hours on Monday, January 13.
The company added that KMPCL owns a 3,600 MW thermal power plant in Chhattisgarh, which uses domestic coal. Presently, 1,800 MW is operational, and 95 per cent of it is tied up under long—and medium-term power purchase agreements.
An additional 1,800 MW is under construction, of which one unit (600 MW) is 40 per cent completed. The balance of the plant is in place for the remaining 1,200 MW. The plant has a firm water and coal transportation arrangement for the entire 3,600 MW.
"After this, the company's total locked-in thermal generation capacity stands at 7.5 GW, and the total locked-in generation capacity is 28.2 GW. This positions JSW Energy to achieve its target of 20 GW significantly before 2030 and is committed to a net zero target by 2050," said JSW Energy.
Sharad Mahendra, Joint Managing Director and CEO of JSW Energy said this strategic move positions the company to address India's increasing energy needs through a diversified energy mix, integrating both conventional and renewable sources.
"Strategically located near a coal block, the plant boasts PPA tie-ups and efficient operations, ensuring a reliable power supply. As we move forward, we will continue to explore new opportunities and strive to remain at the forefront of the energy sector,” said Mahendra.
JSW Energy's share price has been falling since January 2. If the stock ends in the green, it will snap its eight-session losing streak.
On a monthly scale, the stock has been down since October last year. For January so far, it has lost over 15 per cent.
Till January 13 close, the stock has gained just 7 per cent over the last year. It hit a 52-week low of ₹451.80 on January 17 and a 52-week high of ₹804.95 on September 24 last year.
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