FCC

JSW in talks to acquire Mytrah Energy

2022-07-12

The JSW Group has initiated talks with several private equity (PE) funds, including American investment management firm Apollo Global Management, to acquire its renewable power producer, Mytrah Energy (India) (MEIPL).

The current enterprise valuation is $2 billion. JSW group’s JSW Energy has a target to add 15 gigawatts (Gw) of renewables in its portfolio with an investment of $10 billion by 2030. Mytrah has a portfolio of wind and solar power projects with a capacity of 1.8 Gw. MEIPL is a subsidiary of Bindu Vayu (Mauritius), which is fully owned by Mytrah Energy (MEL). MEL was earlier listed on the Alternative Investment Market (AIM), a sub-market of the London Stock Exchange. Its main promoter, Ravi Kailas, chairman of Mytrah Group, holds 93% of the shares in MEL.

A JSW group spokesperson declined to comment on the issue. Lenders are currently looking at various parameters to finance the transaction, including the power purchase agreement (PPA) and its clauses. “If the (MEL) projects have additional payment security mechanisms, compensation for grid unavailability, and financial protection in case of an off-taker default, then the investors would look at financing the acquisition,” said a banker working close with the developments.

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