GQG Partners Acquires 1.19 crore shares of JSW Energy, at ₹345 per share

GQG Partners, led by Rajiv Jain, acquires 0.72% stake in JSW Energy via open market transactions worth ₹410.94 crore. Authum Investment sells 0.97% stake at the same price. JSW Energy's stock rises 3% post-acquisition announcement, reinforcing investor confidence. The move highlights the global interest in India's energy sector and JSW Energy's growth potential.

Rajiv Jain's GQG Partners buys ₹411 crore shares 

Fort Lauderdale-based asset management firm GQG Partners, led by Rajiv Jain, has made a strategic move by acquiring a substantial stake in India's prominent power producer, JSW Energy. The acquisition, executed through open market transactions on August 14, marks a significant development in the energy sector.

GQG Partners' US-based Emerging Markets Equity Fund purchased 1.19 crore equity shares of JSW Energy, equivalent to a 0.72%t stake in the company. The shares were acquired at an average price of ₹345 per share, totaling an investment of ₹410.94 crore. The deal reflects the confidence GQG Partners holds in JSW Energy's growth prospects.

The transaction involved Authum Investment & Infrastructure as the seller, shedding 1.6 crore equity shares or a 0.97%t stake in JSW Energy, mirroring GQG Partners' acquisition price. As of June 2023, Authum Investment held a 2.01% stake in JSW Energy, making this strategic sale noteworthy.

Following the news of GQG Partners' acquisition, JSW Energy's stock demonstrated resilience, climbing by 3% on the NSE on August 16. The announcement of GQG Partners' substantial investment resonated positively with investors, reflecting the market's optimism about JSW Energy's future trajectory.

JSW Energy, a prominent player in the Indian power sector, maintains a diversified portfolio encompassing wind, thermal, and hydropower generation. With a robust presence across the country, the company contributes a significant capacity of 6,677 MW to India's energy landscape. Additionally, JSW Energy has extended its footprint internationally, owning stakes in natural resource enterprises in South Africa.

In a notable expansion move, JSW Energy recently completed the acquisition of 1,753 MW energy assets from Mytrah Energy in various regions of India, including the southern, western, and central parts. This strategic acquisition reinforces JSW Energy's commitment to bolstering its energy generation capabilities and diversifying its portfolio.

The financial performance of JSW Energy for the June 2023 quarter revealed a 48% decline in consolidated net profit, amounting to ₹290 crore. Despite this, the company showcased resilience in its revenue figures, which experienced a marginal dip of 3.3 percent, totaling ₹1,222 crore for the same period. Notably, the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) demonstrated robust growth, surging by 19.6% to ₹1,222.1 crore. This uptick in EBITDA was accompanied by an improved EBITDA margin, which stood at 41.7%, reflecting a significant increase from the previous fiscal's 33.8%

Rajiv Jain's GQG Partners Emerging Markets Equity Fund's strategic investment in JSW Energy underscores the growing attractiveness of India's energy sector to global investors. The infusion of capital and investor confidence in JSW Energy is expected to contribute positively to the company's growth trajectory, as it continues to play a vital role in India's energy landscape.