JSW Energy's signing of a share purchase agreement to acquire GMR Kamalanga Energy, which owns and operates a 1,050 Mw coal-fired power plant, has enthused the Street. While the acquisition is in the right direction as it puts JSW Energy’s robust balance sheet and cash flows to better use, the gains too are expected to accrue from day one.
Moreover, valuations appear reasonable, and the deal does not change JSW Energy’s debt-equity ratio, which remains at less than 1x. The acquisition of three units of 350 Mw each is valued at an enterprise value (EV) of Rs 5,321 crore, ...
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First Published: Wed, February 19 2020. 20:47 IST
