Business Acquisition
JSW Energy Signs Agreement to Acquire 300 MW Maruti Clean Coal & Power Limited for Enterprise Value of ₹1,410 Crore
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JSW Energy Limited has signed a definitive agreement to acquire 100% equity ownership of Maruti Clean Coal & Power Limited (MCCPL), a 300 MW thermal power producer in Chhattisgarh, for an enterprise value of approximately ₹1,410 crore. The acquisition is expected to strengthen JSW Energy’s thermal portfolio, improve earnings accretion, enhance cash flows, and expand its installed and locked-in thermal generation capacity.
PRICE-SENSITIVE TRIGGER
Event: Acquisition of Maruti Clean Coal & Power Limited (MCCPL)
Type: Business Acquisition
Impact: Positive
Immediate Effect: The transaction will add a 300 MW operational thermal power asset to JSW Energy’s portfolio upon completion, increasing thermal generation capacity and strengthening earnings visibility through existing long-term power purchase agreements.
Key Metrics:
- Enterprise Value of Acquisition: ₹1,410 crore
- MCCPL Installed Capacity: 300 MW
- Estimated FY26 EBITDA of MCCPL: ~₹279 crore
- MCCPL Revenue FY2025-26 (Unaudited): ₹787 crore
- MCCPL Revenue FY2024-25 (Audited): ₹754 crore
- MCCPL Revenue FY2023-24 (Audited): ₹789 crore
- Existing JSW Energy Installed Thermal Capacity: 5,658 MW
- Post-Acquisition Installed Thermal Capacity: 5,958 MW
- Post-Acquisition Locked-in Thermal Capacity: 10,958 MW
- Existing Total Locked-in Generation Capacity: 32.1 GW
- Operational Capacity Across Portfolio: 13.9 GW
- Capacity Under Construction: 13.6 GW
- Renewable & Other Pipeline Capacity: 4.6 GW
Highlight:
- JSW Energy will acquire a 300 MW operational thermal asset at an enterprise value of approximately ₹1,410 crore, with the acquired business generating an estimated FY26 EBITDA of ₹279 crore.
What Happened ?
JSW Energy Limited entered into a definitive agreement with Kolahai Infotech Private Limited and SFI Parcel Services Private Limited to acquire 100% equity shares of Maruti Clean Coal & Power Limited (MCCPL).
MCCPL owns and operates a 300 MW thermal power plant located in Korba, Chhattisgarh. Upon completion of regulatory approvals and customary closing conditions, MCCPL will become a wholly owned subsidiary of JSW Energy.
The acquisition aligns with JSW Energy’s strategy of strengthening its thermal generation portfolio through value-accretive operating assets while maintaining portfolio balance across thermal, renewable and storage businesses.
Key Details
Acquisition Overview:
- JSW Energy will acquire 100% ownership of MCCPL.
- MCCPL owns a 300 MW operational thermal power plant in Korba, Chhattisgarh.
- Acquisition enterprise value is approximately ₹1,410 crore.
- MCCPL has a long-term PPA for 195 MW (net) with Rajasthan discoms routed through PTC India.
- Residual PPA tenure is approximately 14 years.
- Around 5% power is supplied at variable cost to Chhattisgarh discom.
- Remaining ~64 MW capacity is sold through merchant markets.
- Coal supply is supported through a long-term Fuel Supply Agreement with SECL and linkage under the SHAKTI scheme.
- The acquisition is subject to regulatory approvals and customary closing conditions.
- MCCPL was incorporated on March 8, 1999 and operates exclusively in India.
Strategic Benefits:
- Strengthens JSW Energy’s thermal generation portfolio.
- Provides immediate EBITDA and PAT accretion.
- Enhances operating cash flows from day one.
- Supports reduction in net leverage.
- Improves balance-sheet resilience.
- Creates operational synergies with JSW Energy’s nearby Mahanadi thermal operations.
- Offers opportunities to optimize logistics and O&M costs.
Note:
- Following completion, JSW Energy’s installed thermal generation capacity will increase from 5,658 MW to 5,958 MW, while total locked-in thermal capacity will rise to 10,958 MW.
Risk Analysis
Summary:
- The acquisition remains subject to regulatory approvals and transaction completion conditions. While the target asset is operational and backed by contracted revenues, execution and integration risks remain until closing.
Key Risks:
- Transaction is pending customary regulatory approvals.
- Closing adjustments may alter final acquisition consideration.
- Merchant power sales expose a portion of capacity to market price volatility.
- Thermal power operations remain subject to fuel supply and regulatory risks.
- Expected synergies and cost optimization benefits may take time to materialize.
Worst Case Scenario:
- Delays in approvals, adverse regulatory developments, operational underperformance, or lower-than-expected merchant market realizations could reduce the anticipated financial benefits of the acquisition.
Risk Level: Medium
Company Commentary
- The acquisition reflects JSW Energy’s disciplined “Build vs Buy” capital allocation strategy.
- Management believes MCCPL is a value-accretive operating asset that strengthens thermal generation capacity and cash flows from day one.
- The company views the acquisition as a step toward building a balanced and resilient power portfolio.
- JSW Energy expects the transaction to support India’s growing energy demand while enhancing shareholder value.
- The acquisition is expected to strengthen the company’s regional thermal footprint and operational efficiencies.
Official Exchange Filing: JSW Energy Limited
