JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited (“The Company”), has signed a definitive agreement to acquire a 4,696 MW renewable energy (“RE”) platform from O2 Power Pooling Pte. Ltd. (“O2 Power”), a platform jointly established by EQT Infrastructure & Temasek. The transaction entails the acquisition of O2 Power Midco Holdings Pte. Ltd. and O2 Energy SG Pte. Ltd and is subject to the approval of the Competition Commission of India (CCI) and other customary approvals standard for a transaction of this size.
The transaction values the platform at an Enterprise Valuation of approximately ₹12,468 crores (~ US$ 1.47 bn), after adjusting for net current assets.
O2 Power is a renewable energy platform with a capacity of 4,696 MW – where 2,259 MW will be operational by June 2025, 1,463 MW is currently under construction, and an additional 974 MW are in the pipeline, all scheduled for commissioning by June 2027. The platform has a blended average tariff of ₹3.37/KWh with a remaining life of ~23 years. The capacities are spread across seven resource-rich states of India. This acquisition will leapfrog the Company’s locked-in generation capacity by 23%, from 20,012 MW to 24,708 MW.
Sharad Mahendra, CEO of JSW Energy, expressed excitement over the acquisition of O2 Power’s 4.7 GW renewable energy platform, JSW’s largest to date, enhancing its leadership in India’s energy sector. He welcomed O2 Power’s team and highlighted the platform’s role in strengthening JSW’s footprint across key resource-rich states, ensuring exceptional stakeholder value.
CFO Pritesh Vinay called the acquisition highly value-accretive for JSW Energy shareholders, noting its appeal in the “Build vs Buy” trade-off and its alignment with JSW’s prudent capital allocation strategy. He emphasized the platform’s quality, strong cash returns, and its importance in driving JSW’s ambitious growth in the renewable energy sector.
The platform boasts most of the capacity tied up under a long-term power purchase agreement (“PPA”) with quality off-takers with high credit ratings. Further, the C&I capacity of the platform stands at 596 MW, which takes the Company’s total C&I capacity to 3,694 MW (including JSW Group C&I capacity of 2,653 MW). PWC was the transaction advisor to the company, while Khaitan & Co and Herbert Smith were the legal advisors, KPMG carried out financial and tax due diligence and Wind Guard carried out the technical due diligence.
