JSW Energy shares hit 52-week high on securing new order

Shares of JSW Energy rose over 2% to hit a 52-week high in early trade on Monday after the company informed exchanges that it bagged a wind-solar hybrid power project from Solar Energy Corporation of India. JSW Neo Energy, a wholly owned subsidiary of JSW Energy, has received a letter of award (LoA) for setting up a 300 megawatt (MW) ISTS connected wind-solar hybrid power project from Solar Energy Corporation of India Limited (SECI).

Cheering the news, JSW Energy shares opened higher at 731.35, up 1.16% against the previous closing price of 722.95 on the BSE. In the first two hours of trade so far, the energy heavyweight rose as much as 2.4% to touch a new 52-week high of 740.65, while the market capitalisation rose to 1.27 lakh crore. The stock has gained nearly 190% against its 52-week low of 256.4 touched on June 26, 2023.

In a regulatory filing on June 21, JSW Energy said that its subsidiary, JSW Neo, secured the order against tariff based competitive bid invited for setting 1,200 MW ISTS-connected wind-solar hybrid power projects (tranche VIII).

With this capacity award, the company's total locked-in capacity increases to 13.6 GW, while it expects to have an installed generation capacity of 9.8 GW by CY24, up from 7.3 GW currently, the company said in the exchange filing.

“With this hybrid project, the company strengthens its energy solution offerings while moving towards an energy products and services company,” the release notes.

As per the JSW Group company, it has a total locked-in generation capacity of 13.6 GW comprising 7.3 GW operational, 2.6 GW under-construction across wind, thermal and hydro and pipeline of 3.7 GW. In addition, the company has 3.4 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project. The company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030. JSW Energy has set an ambitious target of achieving carbon neutrality by 2050.

In a separate exchange filing on June 21, JSW Energy said that global rating agency Fitch has affirmed 'BB+' rating to JSW Hydro Energy's $707 million senior secured notes due 2031, with a stable outlook. JSW Hydro is an indirectly fully owned subsidiary of JSW Energy, which owns two operational hydropower projects - the 1,091 megawatt (MW) Karcham Wangtoo (KW) hydro power plant on the Satluj river and the 300 MW Baspa II (B2) plant on the Baspa river - both in the Indian state of Himachal Pradesh.

Fitch in its report said that the rating reflects the credit quality of the hydropower project portfolio, supported by a robust cost-plus regulatory framework with no hydrology risk for the developer. “KW has contracted a large part of its capacity with PTC India Limited, which is owned by various central-government entities, at a low tariff and B2 has contracted most of its capacity with the Himachal Pradesh State Electricity Board Limited (HPSEBL).”

The agency further said that the rating is constrained at 'BB+' due to uncertainty around the terms and conditions of future debt refinancing and the systemic risk from its exposure to state-owned power-distribution companies, even though the project portfolio's financial profile is stronger than that commensurate for a 'BB+' credit assessment.