JSW Energy's subsidiary JSW Neo Energy has agreed to pay about Rs 10,531 crore ($1.3 billion) to Mytrah Energy (India) to purchase some renewable energy capacity. JSW Neo Energy would purchase a portfolio of 17 special purpose vehicles (SPVs) and one ancillary SPV totalling 1,753 MW of renewable energy producing capacity.

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This is the biggest acquisition JSW Energy has undertaken since its founding, and it would increase operational generation capacity from 4,784 MW to 6,537 MW, a surge of more than 35 percent.

At 11:28 am, shares of JSW Energy were trading at Rs 318.3, a 2.1 percent up from the previous close on the BSE.

According to JSW Energy, the parties have signed the relevant definitive agreements, but the deal is pending regulatory and other customary clearances. After accounting for net current assets, the transaction values the Mytrah Energy portfolio at an enterprise valuation of roughly Rs 10,530 crore.

"Upon consummation of the transaction, the said 18 subsidiaries of Mytrah Energy would become subsidiaries of JSW Neo Energy and step-down subsidiaries of the company," the company said.

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The company wants to reach 10 GW of capacity by the financial year 2025 and 20 GW of capacity by the financial year 2030, with 85 percent of the capacity coming from renewable sources.

The purchase would assist JSW Energy in exceeding its 10-GW renewable-led capacity development objective by the financial year 2025.

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The Mytrah companies being purchased mostly operate in India's southern, western, and central regions. "The assets have a long-term PPA with an average remaining life of about 18 years,” JSW Energy added.

The deal is anticipated to close by November 15, 2022, provided that the prerequisite conditions outlined in the agreement are met. Lenders and the Competition Commission of India (CCI) must both approve the deal.

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(With inputs from Reuters)

(Edited by : Nishtha Pandey)