JSW Energy to buy two hydropower projects; stock rallies over 11%

MUMBAI: JSW Energy's scrip advanced by over 12 per cent today after the company said it will acquire two hydro electric projects of Jaiprakash Power Ventures in Himachal Pradesh for about Rs 9,700 crore.

Shares of Jaiprakash Power Ventures also gained 2.71 per cent to end the day at Rs 14.76 on the BSE.

Shares of JSW Energy zoomed 12.13 per cent to settle at Rs 85.05 on the BSE. During the day, it rallied 13.38 per cent to Rs 86.

At the NSE, it surged 12.06 per cent to close at Rs 85. The company's market capitalisation climbed Rs 1,509.67 crore to Rs 13,948.67 crore.

In terms of volume, 23.43 lakh shares of the company changed hands at the BSE, while over one crore shares were traded at the NSE during the session.

"JSW Energy has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100 per cent stake in Himachal Baspa Power company for a base enterprise value of Rs 9,700 crore," JSW Energy had said in a statement yesterday.

The board of directors of Jaiprakash Power has approved the transfer of 300 MW of Baspa II hydro-electric project and 1,091 MW Karcham Wangtoo hydro project into a separate company -- Himachal Baspa Power company, it had said.

In the fiscal ended March 2014, the Karcham project had earned a revenue of Rs 1,242 crore while the Baspa project Rs 320 crore.

The acquisition will make JSW Energy as the largest private sector hydro-power generator in the country.

Post-acquisition, the aggregate installed power generation capacity of JSW Energy will enhance to 4,531 MW.