JSW Energy has entered into exclusive discussions with GMR Energy Limited (GEL) for potential acquisition of its subsidiary, GMR Kamalanga Energy Limited (GKEL), which owns and operates a 1,050 MW (3x350 MW) thermal power plant in Odisha, for an enterprise value of ₹5,321 crore.
Prashant Jain, joint managing director and CEO JSW Energy said, “With GMR’s Kamalanga and Hind Bharat acquisition, our total installed capacity will be 6,350 MW of which 1,640 MW will be renewable. Going forward, we are planning to add 3,500 MW of renewable capacity to reach a total capacity of 10,000 MW by 2020.”
JSW Energy has signed a Share Purchase Agreement (SPA) with GEL to acquire 100% stake in GKEL for ₹5,321 crore subject to working capital and other adjustments.
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This acquisition will expand the company’s presence in the eastern region of the country and further diversify its fuel mix and offtake arrangements, besides taking the overall installed capacity of the company to 5,609 MW.
When asked about funding the acquisition, Mr. Jain said, “We will take existing debt of ₹3,951 crore in our books and will pay ₹1,370 crore on closing of the deal and another ₹755 crore on completion of certain milestones. We have strong balance sheet with debt equity ratio of 0.76:1. So, funding will not be problem.”