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JSW Energy shares rose more than 2% in Monday's trading session after the company announced the acquisition of Maruti Clean Coal & Power Limited (MCCPL) for an enterprise value of approximately ₹1,410 crore. The acquisition is expected to strengthen the company's thermal power business, improve cash flows, and add an earnings-accretive asset to its portfolio.
As of 10:45 AM IST, JSW Energy shares were trading near the day's high of ₹572.00. The stock opened at ₹571.55 compared with the previous close of ₹559.35 and touched an intraday low of ₹564.25. Trading activity remained healthy, with more than 10.97 lakh shares exchanged on the NSE.
The company has signed a definitive agreement to acquire 100% equity shares of MCCPL, which owns and operates a 300 MW thermal power plant in Korba, Chhattisgarh. Upon completion of the transaction and receipt of necessary regulatory approvals, MCCPL will become a wholly owned subsidiary of JSW Energy.
The acquisition provides JSW Energy with an operational asset that has strong revenue visibility through long-term power supply contracts. MCCPL has a long-term Power Purchase Agreement (PPA) for 195 MW with Rajasthan discoms through PTC India, with a remaining contract tenure of around 14 years. The project also supplies 5% of its power to the Chhattisgarh discom at variable cost, while the remaining 64 MW capacity is sold in the merchant market.
Fuel security remains a key strength of the asset, with coal supply secured through a long-term agreement with South Eastern Coalfields Limited (SECL) and linkage under the SHAKTI scheme. This is expected to support stable plant operations and predictable earnings.
Commenting on the acquisition, Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said the transaction reflects the company's disciplined "Build vs. Buy" strategy focused on value-accretive opportunities. He added that MCCPL is an operating asset that will contribute to earnings from day one while strengthening the company's thermal portfolio and cash flow generation.
The company also expects operational synergies due to the proximity of MCCPL's plant to JSW Energy's Mahanadi thermal power facility. Management believes the acquisition will be EBITDA and PAT accretive while helping improve financial stability and reduce net leverage over time.
With this acquisition, JSW Energy's installed thermal generation capacity will increase from 5,658 MW to 5,958 MW. The transaction also takes the company's installed and locked-in thermal power capacity to 10,958 MW, reinforcing its long-term growth ambitions in the Indian power sector.
The positive market reaction reflected investor confidence in the strategic rationale of the deal. Despite remaining below its 52-week high of ₹617.35, the stock has recovered significantly from its 52-week low of ₹427.75, highlighting improving sentiment toward the company and the broader power sector.
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