JSW Energy QIP: Shares of Sajjan Jindal-led JSW Energy surged on Wednesday morning to hit a record high following the announcement of the commencement of its qualified institutional placement (QIP) at a floor price of Rs 510.09, representing a 6 per cent discount to Tuesday's closing price of Rs 541.95. The company's board has revealed plans to raise up to Rs 5,000 crore through the QIP in one or more tranches, with the issue price set to be disclosed on April 5.

JSW Energy shares rose 2.91 per cent to an all-time high of Rs 558 apiece on the NSE.

JSW Energy stated, "The Finance Committee of the Board has fixed the ‘Relevant Date’ for the purpose of the issue as April 2, 2024, and accordingly, the floor price for the issue has been determined at Rs 510.09 per Equity Share." Additionally, the company may offer a discount of up to 5 per cent on the floor price for the issue.

Furthermore, the company disclosed that a meeting of the Finance Committee of the Board is scheduled for April 5, 2024, to consider and approve the issue price of the equity shares, including any discount thereto, as permitted under the SEBI ICDR Regulations.

The QIP, not exceeding Rs 5,000 crore, will be raised in one or more tranches, subject to regulatory and statutory approvals. The Finance Committee of the board has been authorised to make all necessary decisions in this regard.

JSW Energy had previously obtained shareholder approval via a special resolution passed on June 30, 2023, for the equity shares to be allotted to the qualified institutional buyers pursuant to the issue.

Key points

• JSW Energy's QIP commences with a floor price of Rs 510.09 per share, reflecting a 6 per cent discount to the previous day's closing price.
• The company aims to raise up to Rs 5,000 crore through the QIP, with the issue price set to be announced on April 5.
• The QIP will be conducted in one or more tranches, subject to regulatory approvals.
• JSW Energy's board has authorised the Finance Committee to make necessary decisions regarding the QIP.
• The move reflects JSW Energy's strategic efforts to fortify its financial position and support its growth initiatives in the power sector.