JSW Energy share price closed higher on Tuesday after the firm inked a share purchase agreement with GMR Energy to buy its subsidiary GMR Kamalanga Energy for Rs 5,321 crore. Share price of JSW Energy ended 3.46% higher at Rs 65.75 compared to the previous close of Rs 63.55 on BSE. JSW Energy stock rose 7.63% intra day to Rs 68.40 in early trade on BSE. The stock has gained 4.53% in last two days.
It has risen merely 1.78% in last one year but lost 5.12% since the beginning of this year. The mid cap stock's market capitalisation rose to Rs 10,798 crore. 3.03 lakh shares changed hands amounting to turnover of Rs 2.01 crore on BSE. GMR Kamalanga Energy (GKEL) owns and operates a 1050 MW (3 x 350 MW) coal based thermal power plant located at Dhenkanal, District Kamalanga, Odisha.
"The company has signed share purchase agreement with GEL, pursuant to which the company shall acquire 100 per cent stake in GKEL for a total consideration of an amount up to Rs 5,321 crore (subject to working capital and other adjustments)," JSW Energy said in a filing to Bombay Stock Exchange on February 17. The company has to complete the deal within 90 days from the execution date of share purchase agreement, it added.
The acquisition was part of the company's strategy for expansion and consolidation in the power sector. Consequent to the acquisition, GKEL will be a 100 per cent subsidiary of the company.
Post-acquisition, the total installed power generation capacity of JSW Group firm will increase to 5,609 MW. This will expand the company's presence in the eastern region of the country and further diversify its fuel mix and off-take arrangements, JSW Energy said in the regulatory filing.
Written by Aseem Thapliyal
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