Three private equity investors in race to buy minority stake in JSW Neo Energy

JSW Neo Energy recently made a significant acquisition, purchasing 1.75 GW of renewable energy generation capacity from Mytrah Energy for Rs 10,530 crore.

Private equity investors TPG, Tokyo Electric Power Company (Tepco), and Brookfield are in advanced discussions to acquire a minority stake in JSW Neo Energy, a subsidiary of listed JSW Energy, a newspaper report has said. It is likely that a deal with two of these funds will be finalised in the coming weeks, the Economic Times reported, citing sources. The JSW Group aims to raise up to $500 million from this stake sale, which will likely be utilised for expanding its presence in renewable energy.

Moneycontrol couldn't verify the report independently.

JSW Neo Energy is expected to function as the entity where JSW Group will consolidate its upcoming renewable projects.

JSW Energy has plans to transfer its existing hydro energy projects into subsidiaries under JSW Neo Energy. This strategic move aims to streamline its renewables portfolio, create an efficient fundraising structure, and unlock value for shareholders, the report said.

US private equity firm TPG, with existing investments in India, including BookMyShow and Dream11, previously pumped in $1 billion into Tata Motors via its Rise Climate fund. Tepco holds a stake in ReNew Power through its joint venture with Chubu Electric Power Co. Canadian firm Brookfield Asset Management is actively seeking to expand its renewable energy portfolio in India. These investments show the attractiveness of the Indian renewable energy sector for global investors.

JSW Neo Energy recently made a significant acquisition, purchasing 1.75 GW of renewable energy generation capacity from Mytrah Energy for Rs 10,530 crore. This acquisition includes wind energy capacity of 1.33 GW and solar energy capacity of 422 MW, primarily located in southern, western, and central India.

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Also, this acquisition marked the largest by JSW Energy since its inception and boosted the company's operational capacity by more than 36 percent, increasing it from 4.81 GW to 6.56 GW. JSW Energy has set ambitious targets for its operational power generation capacity, aiming to achieve 10 GW by 2025 and 20 GW by 2030. This aligns with the company's commitment to expanding its presence in the renewable energy sector.