Private equity investors TPG, Tokyo Electric Power Company (Tepco) and Brookfield are in advanced talks to buy a minority stake in JSW Neo Energy, said people with knowledge of the matter.
The subsidiary of listed JSW Energy may sign a deal with two of these funds in the coming weeks, they said. JSW Group is looking to raise up to $500 million from the stake sale, which is expected to be used for further expansion in renewable energy.
TPG declined to comment. JSW, Tepco and Brookfield did not respond to queries.
JSW Neo Energy will house the parent’s upcoming renewable projects for generation, storage and production of green hydrogen.
Target 10 GW generation capacity by 2025
JSW Energy will also be moving its existing hydro energy projects into subsidiaries under JSW Neo Energy, it said earlier. This will help the company build and streamline its renewables portfolio, as well as set up a holding structure that’s efficient for fundraising and unlocking value for shareholders, it had said.
US private equity fund TPG, which has several investments in India – including in BookMyShow and Dream11 – earlier invested $1 billion in Tata Motors through its Rise Climate fund. Tepco holds a stake in ReNew Power through Jera, a joint venture with Chubu Electric Power Co. Canada’s Brookfield Asset Management is also looking to expand its renewable energy portfolio in India.
JSW Neo Energy recently acquired 1.75 GW of renewable energy generation capacity from Mytrah Energy for Rs 10,530 crore. This includes wind energy capacity of 1.33 GW and solar energy capacity of 422 MW – primarily in the southern, western and central parts of India.
The acquisition, the largest by JSW Energy since inception, propelled the company’s operational capacity by over 36% from 4.81 GW to 6.56 GW. The listed company has a target of achieving 10 GW operational power generation capacity by 2025, and 20 GW by 2030.
Earlier, Prashant Jain, joint managing director of JSW Energy, said in an interview that the company was contemplating taking JSW Neo public.
