JSW Energy shares zoom nearly 8% on signing Rs 12,468 cr definitive agreement with O2 Power

Shares of JSW Energy rallied 7.7% on the BSE today to a high of Rs 673.05 after announcing that its wholly-owned subsidiary JSW Neo Energy (JSWNEL) signed definitive agreements with O2 Power group.

The agreement will be signed between JSWNEL and O2 Power Pooling and O2 Power SG to acquire O2 Power Midco Holdings and O2 Energy SG along with their respective subsidiaries for Rs 12,468 crore.

The target subsidiaries have a consolidated operational and under construction/development renewable energy portfolio of 4.7 GW.


“JSW Neo Energy Limited (“JSW Neo”), a wholly owned subsidiary of JSW Energy Limited (“The Company”), has signed a definitive agreement to acquire a 4,696 MW renewable energy (“RE”) platform from O2 Power Pooling Pte. Ltd. (“O2 Power”), a platform jointly established by EQT Infrastructure & Temasek. The transaction entails acquisition of O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd and is subject to approval of the Competition Commission of India (CCI) and other customary approvals standard to a transaction of this size,” said the company in its exchange filing.

The acquisition would help JSW Energy in achieving its renewable-led capacity growth target of 20 GW before FY 2030.

The acquisition is expected to be completed by May 26, 2025, as informed by the company.

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Following the update, domestic brokerage firm Motilal Oswal has reiterated its ‘buy’ call on the stock, commenting on the acquisition of O2 Power.

JSW Share Price Target

Motilal Oswal has given a target price of Rs 810 for JSW Energy shares.

The stock may see up to Rs 57/share value unlocking upon the deal completion, believes Motilal Oswal.

“The listed Renewable Energy (RE) generation companies are currently trading at 15x EV/EBITDA. Meanwhile, the acquisition of 4.7GW high-quality renewable assets is taking place at 7x EV/EBITDA,” said the domestic brokerage fir in its note.

Motilal Oswal further stated that it liked the diverse nature of the asset portfolio encompassing solar, wind, and niche segments, estimating the company’s net debt/EBITDA for FY26 to rise to 5.4x (current estimate: 4.7x).

Additionally, it pointed out that a transitory rise in leverage should not be a major concern.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)