JSW Energy Jumps 8% Amid O2 Power Acquisition; Motilal Oswal Shares Target Price – News18
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Shares of JSW Energy rose by as much as 8% at the opening on Monday, following the company’s announcement of its entry into the renewable energy sector
JSW Energy Share Price
Shares of JSW Energy rose by as much as 8% at the opening on Monday, following the company’s announcement of its entry into the renewable energy sector. The news sparked positive reactions from brokerage firms, which led to an increase in the stock price.
JSW Energy’s wholly-owned subsidiary, JSW Neo Energy, has entered into a definitive agreement to acquire O2 Power, a renewable energy platform co-founded by Swedish asset manager EQT Partners and Singapore’s Temasek Holdings. According to the company’s exchange filing, O2 Power’s operational and under-construction renewable energy portfolio totals 4.7 GW, with the platform valued at Rs 12,468 crore ($1.47 billion) after adjustments for net current assets.
Following the announcement, JSW Energy’s shares surged by 7.67% to Rs 673.05 on Monday, bringing its market capitalization to over Rs 1.17 lakh crore. The stock had closed at Rs 625.05 on the previous trading day.
The transaction involves the acquisition of O2 Power Midco Holdings and O2 Energy SG, and is subject to approval from the Competition Commission of India (CCI) and other customary regulatory approvals. O2 entities reported a cumulative revenue of Rs 538 crore for FY24.
JSW Energy’s stock has climbed roughly 67% from its 52-week low of Rs 404 in January 2024, though it has fallen about 17% from its 52-week high of Rs 804.95 in September 2024. The stock has remained largely flat over the last month and is down 13% over the past six months.
Motilal Oswal Financial Services has a favorable outlook on JSW Energy, valuing the company’s core business at 15 times FY27 EBITDA, indicating strong operational performance and market positioning. It also values JSW Steel’s stake at a 25% discount to the current market price. Motilal Oswal has set a target price of Rs 810 per share, factoring in an additional Rs 60 per share from KSK Mahanadi, which is expected to materialize once the deal is approved.
On December 27, JSW Energy’s shares closed 1% lower at Rs 629.85, with a market capitalization of Rs 1.09 lakh crore. Over the past year, the stock has gained 53%.
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