JSW Group intends to sell a small share in Neo Energy for $500 m

JSW Group is trying to generate up to $500 million by selling a minority position in JSW Neo Energy, a listed JSW Energy subsidiary. One person, who asked to remain anonymous since the conversations are confidential, stated that the steel and energy group had chosen Standard Chartered Bank to serve as the sell-side advisor for the transaction. One of the prospective bidders is TPG's The Rise Fund, which makes investments in sustainable energy businesses. The fund has previously made a $1 billion investment in Tata Motors' electric vehicle division.

People cited above stated that the fund-raising proceeds would be used to increase the company's use of renewable energy. Requests for comment were refused by a JSW Energy spokesman. To the best of our knowledge, Standard Chartered and TPG have not responded to email inquiries submitted on Monday. At a time when energy companies nationwide are looking for capital for their green energy enterprises, the proposed fund raise is timely.

The Aditya Birla Group is trying to raise $400 million by selling up to 49% of its investment in the group's renewable energy sector. Additionally, Standard Chartered has been hired as its investment banker. The board of Adani Green Energy is anticipated to meet shortly to discuss a proposal to generate between $750 million and $1 billion through a stake sale.

JSW Energy's renewable energy projects, including generating, energy storage, and green hydrogen, will be housed at JSW Neo Energy. The business has previously said that all future renewable energy projects and its operational hydroelectric projects would be housed under subsidiaries under JSW Neo Energy.

This action will aid JSW Energy in expanding and streamlining its renewable portfolio and creating a holding structure that is effective for raising money and releasing value for shareholders. Recently, JSW Neo Energy paid Mytrah Energy 10,530 crore to buy 1.75 gigawatts of renewable energy producing capacity. Specifically in the southern, western, and central regions of India, this comprises 1.33 gigawatts of wind energy capacity and 422 megawatts of solar energy capacity.

The largest acquisition JSW Energy has made since its founding increased the company's operational capacity by more than 36%, from 4.81 gigawatt to 6.56 gigawatt. The corporation wants to generate 10 gigawatts of operational power by 2025 and 20 gigawatts by 2030. JSW Energy's joint managing director, Prashant Jain, has previously stated in an interview that the company was thinking about going public with JSW Neo.