JSW Energy raised Rs 12 billion through the issuance of non-convertible debentures (NCDs) on a private placement basis, following a decision by the company’s board to raise up to Rs 30 billion through rated and listed NCDs. The Finance Committee sanctioned 1,20,000.
NCDs, each valued at Rs 1 lakh, resulting in a total fundraising of Rs 12 billion. This development strengthens JSW Energy’s financial position and aligns with its long-term objectives.
JSW Energy Limited, a prominent player in India’s power sector, has been actively leveraging non-convertible debentures (NCDs) to secure substantial funding for its expansion and operational needs. In recent developments, the company has successfully raised funds through NCDs and has outlined plans for further capital infusion to support its growth trajectory.
Recent Fundraising Through NCDs
In March 2023, JSW Energy’s Finance Committee approved the allotment of 25,000 unsecured, redeemable, rated, listed, taxable NCDs, each with a face value of ₹1,00,000, aggregating to ₹250 crore.
These NCDs carry a coupon rate of 8.45% and have a tenure of approximately three years, maturing on 13 March 2026. The issuance was conducted on a private placement basis and the NCDs are listed on the BSE Limited.
Approval for Raising Additional Funds
In January 2025, JSW Energy’s board granted approval to raise long-term funds up to ₹3,000 crore through the issuance of rated and listed NCDs on a private placement basis. This strategic move aims to bolster the company’s financial resources to support its ongoing and future projects.
The board authorized the Finance Committee to oversee all aspects of the issuance, including finalizing terms and conditions, determining the timing, and ensuring compliance with regulatory requirements. The capital raised through these NCDs is earmarked for various strategic initiatives, including.
Strategic Implications of Fundraising
- Capacity Expansion: JSW Energy is committed to expanding its power generation capacity, focusing on renewable energy projects to align with global sustainability trends.
- Debt Refinancing: The funds may be utilized to refinance existing debt, optimizing the company’s capital structure and reducing financing costs.
- Operational Enhancements: Investments in technology and infrastructure upgrades are planned to improve operational efficiency and reliability.
Financial Performance and Outlook
In the third quarter of the fiscal year 2024-25, JSW Energy reported a consolidated net profit of ₹168 crore, marking a 27% decrease compared to ₹231 crore in the same period the previous year.
Total revenue marginally declined to ₹2,640 crore from ₹2,661 crore year-on-year. The finance cost for the quarter rose to ₹565 crore from ₹521 crore, attributed to the capitalization of projects, with the weighted average cost of debt standing at 8.87%.
Despite the dip in quarterly profits, JSW Energy’s proactive approach to securing funds through NCDs reflects its strategic focus on long-term growth and resilience. The company’s emphasis on expanding its renewable energy portfolio positions it favorably in the evolving energy landscape, where sustainability and clean energy are gaining prominence.
JSW Energy’s successful mobilization of funds through non-convertible debentures underscores its robust financial strategy and commitment to sustainable growth. By securing substantial capital, the company is well-equipped to pursue its expansion plans.
Enhance operational efficiencies, and contribute to India’s energy sector’s transformation towards renewable sources. Investors and stakeholders can anticipate that these strategic financial maneuvers will bolster JSW Energy’s market position and drive long-term value creation.
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Construction, Infrastructure and Mining
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