JSW Energy Shares gains 5%, NCLT nod for ₹15,990 cr KSK Mahanadi buyout
The shares of JSW Energy Limited were trading at ₹491.80 up by ₹23.25 or 4.96 per cent on the NSE today at 2.05 pm.
JSW Energy has secured National Company Law Tribunal (NCLT) approval for the ₹15,990 crore acquisition of KSK Mahanadi Power Company (KMPCL), a 3,600 MW coal-fired plant in Chhattisgarh. The deal, which awaits clearance from the Competition Commission of India (CCI), will significantly boost JSW Energy’s power generation capacity.
The acquisition will increase JSW Energy’s net debt to EBITDA ratio to 5.6x in FY26, before improving to 4.06x in FY27. The company will offer lenders a 26 per cent equity stake, ensuring a 90 per cent recovery of outstanding claims worth ₹29,330 crore. Analysts at Motilal Oswal estimate the net present value (NPV) of JSW Energy’s stake in KMPCL at ₹27 per share, factoring in the 1,800 MW brownfield expansion.
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Despite concerns over rising debt, JSW Energy remains optimistic about the project’s long-term benefits. The company expects revenue to grow from ₹13,460 crore in FY25 to ₹19,460 crore in FY27, with EBITDA increasing from ₹5,790 crore to ₹10,830 crore during the same period.
Motilal Oswal has reiterated a “BUY” rating on JSW Energy, with a target price of ₹705 per share, implying a 60 per cent upside from current levels. However, risks remain, including cost overruns, Power Purchase Agreement (PPA) renewal uncertainties, and contingent liabilities of ₹402 crore related to KMPCL.
JSW Energy’s latest acquisition comes amid strong competition in the thermal power sector, with companies like Adani Power, NTPC, and Jindal Power also bidding for distressed assets. The final CCI approval is expected by Q1FY26.
