Sajjan Jindal-backed JSW Energy Ltd has acquired GMR’s Kamalanga Energy Ltd for ₹5,321 crore. Post the acquisition, the total installed power generation capacity of JSW Energy will increase to 5,609 MW.
JSW Energy had announced this acquisition in October. GMR Kamalanga Energy Ltd is a subsidiary of GMR Energy Ltd and operates a 1,050-MW thermal plant in Odisha. The acquisition is an all-cash deal and includes three plants with 350 MW capacity each, located at Dhenkanal district in Odisha, with revenues of ₹2,195 crore.
The acquisition will expand JSW Energy’s presence in the eastern region and diversify its fuel mix and offtake arrangements.
The deal is expected to go through in three months. However, approvals are needed from the Competition Commission of India, lenders of GMR Kamalanga Energy, Uttar Haryana Bijli Vitran Nigam, and PTC India. The lenders include IDFC, SBI, IDBI, UCO and Canara Bank.
Last year, JSW Energy had acquired Ind Barath under the corporate insolvency proceedings. This deal is awaiting final approval from the NCLT.
“In our view, both the acquisitions are value-accretive and can lift return on equity by 250 bps over the next two years,” said a note by Edelweiss Research.
JSW Energy is pursuing a mixed strategy of enhancing traditional thermal power, along with renewable energy, with its bets on hydro and solar.