JSW Energy shares in focus as firm joins race for Raigarh Champa Rail Infra

Shares of JSW Energy are in news today as the National Company Law Appellate Tribunal (NCLAT) has overturned an earlier order by the National Company Law Tribunal (NCLT), enabling a new bidding process for the Raigarh Champa Rail Infrastructure. This decision favours JSW Energy, which had endeavoured to become a participant in the Corporate Insolvency Resolution Process (CIRP) for this project.

On Friday, JSW Energy stock closed 3.84% higher at Rs 499.10 on BSE. Market cap of the firm stood at Rs 87,231 crore. 

As per the NCLAT's ruling, "The Impugned Order of April 3, 2025, is hereby quashed and as a consequence. The relief as sought for, by the Resolution Professional, to be permitted to issue fresh Form G and to invite Expression of Interest (EoI) from new and interested eligible Prospective Resolution Applicants is granted."

The tribunal's decision is anticipated to enhance competition, thereby improving the bidding process. It was remarked that reopening the Expression of Interest (EoI) "will certainly increase competition and in all likelihood, result in higher bids." The Chennai-bench of the NCLAT highlighted the process's fairness by stating, ".... since, the EoI is proposed to be reopened for everybody and not for JSW alone, it is fair and transparent and not discriminatory and that since, existing PRAs (Prospective Resolution Applicants) are proposed to be retained with option given to them to participate in challenge mechanism, it is also fair to the existing Resolution Applicants."

Additionally, the NCLAT's ruling addresses potential concerns regarding the value retention of the Corporate Debtor. It is noted that employing the Medha Group’s previously approved bid as the Reserve Price ensures no "value erosion of the Corporate Debtor, if EoI process is reopened." This decision follows JSW Energy's acquisition of KSK Mahanadi Power, a significant thermal power asset, earlier in the year, indicating the company's strategic growth moves.