JSW Energy shares jump over 2% on Tidong Power acquisition and GE Power India demerger deal

JSW Energy shares rose more than 2% on Friday after the company announced two significant moves to strengthen its clean and conventional power portfolio.

The company, through its wholly owned subsidiary JSW Neo Energy Limited, has signed a definitive agreement to acquire Tidong Power Generation Pvt. Ltd. from Statkraft IH Holding AS. The deal, valued at an enterprise valuation of about ₹1,728 crore, is subject to regulatory and customary approvals.

Tidong Power is building a 150 MW run-of-river hydroelectric project in the Tidong Valley of Himachal Pradesh’s Kinnaur district. The hydro plant is expected to be commissioned by October 2026. Once operational, it will supply 75 MW of power to Uttar Pradesh Power Corporation Ltd. (UPPCL) under a 22-year Power Purchase Agreement (PPA) for the peak months of May to October, at a tariff of ₹5.57 per unit. The remaining 75 MW capacity is untied, giving JSW Energy the flexibility to sell power on the merchant market for potentially higher returns.

With this acquisition, JSW Energy’s locked-in generation capacity increases to 30.5 GW, cementing its position among India’s leading clean energy players. The move is in line with the company’s long-term strategy of expanding its renewable and hydroelectric footprint while ensuring stable revenues through long-term PPAs.

In a parallel development, GE Power India Limited announced that its board has approved a Scheme of Arrangement with JSW Energy. Under this scheme, the Durgapur Facility business of GE Power India—which includes the manufacture and supply of power boiler components, pressure vessels, piping, and coal mills—will be demerged and transferred to JSW Energy as a going concern.

As part of the consideration, shareholders of GE Power India will receive equity shares in JSW Energy. The share entitlement ratio has been fixed at 10 fully paid equity shares of JSW Energy (₹10 each) for every 139 fully paid equity shares of GE Power India (₹10 each). The ratio is backed by valuation reports from RBSA Valuation Advisors LLP and GT Valuation Advisors Pvt Ltd, along with a fairness opinion from IDBI Capital Markets & Securities Ltd.

For FY25, GE Power India reported revenue of ₹1,047.1 crore with a net worth of ₹233.08 crore. The Durgapur business contributed revenue of ₹52.95 crore (about 5.1% of total revenue) but had a negative net worth of ₹20.35 crore.

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