JSW Energy’s Plan to Raise ₹5,000 Crore through Qualified Institutional Placement

On April 2, 2024, JSW Energy informed in a stock exchange filing that the company plans to raise ₹5,000 crore through a qualified institutional placement (QIP) program. They aim to accomplish this by selling shares to high-net-worth investors in one or more tranches.

Details of the Issue 

On Tuesday, JSW Energy stated that the company’s board considered and approved the following resolutions:

1. Authorizing the Opening of the Issue on April 2, 2024;
2. Approving the Floor Price for the Issue, being ₹510.09 per Equity Share; and
3. Approving and adopting the Preliminary Placement Document dated April 2, 2024, together with the application form dated April 2, 2024, in connection with the Issue.

The company also said, “We further wish to inform you that the Finance Committee of the Board has fixed the ‘Relevant Date’ for the purpose of the Issue, in terms of Regulation 171(b)(i) of the SEBI ICDR Regulations, as 2nd April, 2024, and accordingly the Floor Price in respect of the Issue has been determined, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations, as ₹ 510.09 per Equity Share.”

JSW Energy also stated that the company may, at its discretion, offer a discount of not more than 5% on the Floor Price so calculated for the Issue.

They further added that a meeting of the Finance Committee of the Board is scheduled to be held on April 5, 2024, to consider and approve, inter-alia, the issue price of the Equity Shares to be issued pursuant to the Issue, including a discount, if any thereto, as permitted under the SEBI ICDR Regulations and pursuant to the approval of the Shareholders accorded through a special resolution passed on June 30, 2023, for the Equity Shares to be allotted to the qualified institutional buyers pursuant to the Issue.

After consulting the book-running lead manager appointed for the issue, the company will determine the issue price.

On April 3, 2024, the share price of JSW Energy Limited opened at ₹547.00, touching the day’s high at ₹558.00, as of 10:32 AM on the NSE.

About JSW Energy Limited

JSW Energy Limited is mainly involved in the business of power generation from its power assets located in Maharashtra, Karnataka, Salboni, and Nandyal.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.