JSW Energy up over 5%

JSW Energy is showing a lot of energy today and this stems from its announcement yesterday late evening. The company stated that the resolution plan submitted by the company for KSK Mahanadi Power Company Limited (“KMPCL”) under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016, has been approved by the Committee of Creditors.

JSW has has received a Letter of Intent from the Resolution Professional on 13th January, 2025.

KMPCL owns a 3,600 MW thermal power plant, utilising domestic coal and located in the state of Chhattisgarh. Presently, 1,800 MW (600 MW x 3 units) is operational which is 95% tied-up under long & medium-term power purchase agreements. An additional 1,800 MW (600 MW x 3 units) is under-construction out of which one unit (600 MW) is 40% completed and balance of plant is in place for remaining 1,200 MW.

The plant has a firm arrangement for water and coal transportation for the entire 3,600 MW. Subsequent to this the company's total locked-in thermal generation capacity stands at 7.5 GW and total locked-in generation capacity stands at 28.2 GW.

This positions JSW Energy to achieve its target of 20 GW significantly before 2030 and is committed to a net zero target by 2050.

The market has given a thumbs up to this news, with the stock opening 2% higher at Rs.528.15 and rising to an intraday high at Rs.544.80, up over 5%. Its 52-week high is at Rs.804.95 and low at Rs.451.80. The stock has no circuit breaker.