InvestorQ : What is the restructuring that JSW Energy is undertaking in its energy business?
swati Bakhda made post

What is the restructuring that JSW Energy is undertaking in its energy business?

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Sam Eswaran answered.
5 days ago
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The latest idea in the power sector is to separate or to isolate the renewable power portfolio to make it more appealing from a valuation perspective. One more company to join that bandwagon is JSW Energy. The board of JSW Energy approved re-organisation of its renewable and thermal businesses. Under the major terms of the restructuring, all existing and upcoming renewable energy businesses will be bucketed under JSW Energy Neo Ltd.

Now, JSW Energy Neo will be a subsidiary of JSW Energy. The idea here is to create a holding structure for the renewable portfolio which is not only efficient from the point of view of ROI and capital allocation but also from the point of view of management and valuations. Like in the case of Tata Power and NTPC, it is expected that this move will facilitate the unlocking of value so that eventually JSW Energy can look to placing stakes in the more sought after renewable business. The target is to achieve 20 GW renewable by year 2030.

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image
Sam Eswaran answered.
5 days ago
Follow

The latest idea in the power sector is to separate or to isolate the renewable power portfolio to make it more appealing from a valuation perspective. One more company to join that bandwagon is JSW Energy. The board of JSW Energy approved re-organisation of its renewable and thermal businesses. Under the major terms of the restructuring, all existing and upcoming renewable energy businesses will be bucketed under JSW Energy Neo Ltd.

Now, JSW Energy Neo will be a subsidiary of JSW Energy. The idea here is to create a holding structure for the renewable portfolio which is not only efficient from the point of view of ROI and capital allocation but also from the point of view of management and valuations. Like in the case of Tata Power and NTPC, it is expected that this move will facilitate the unlocking of value so that eventually JSW Energy can look to placing stakes in the more sought after renewable business. The target is to achieve 20 GW renewable by year 2030.

7 Views

image
Sam Eswaran answered.
5 days ago
Follow

The latest idea in the power sector is to separate or to isolate the renewable power portfolio to make it more appealing from a valuation perspective. One more company to join that bandwagon is JSW Energy. The board of JSW Energy approved re-organisation of its renewable and thermal businesses. Under the major terms of the restructuring, all existing and upcoming renewable energy businesses will be bucketed under JSW Energy Neo Ltd.

Now, JSW Energy Neo will be a subsidiary of JSW Energy. The idea here is to create a holding structure for the renewable portfolio which is not only efficient from the point of view of ROI and capital allocation but also from the point of view of management and valuations. Like in the case of Tata Power and NTPC, it is expected that this move will facilitate the unlocking of value so that eventually JSW Energy can look to placing stakes in the more sought after renewable business. The target is to achieve 20 GW renewable by year 2030.

7 Views

image
Sam Eswaran answered.
5 days ago
Follow

The latest idea in the power sector is to separate or to isolate the renewable power portfolio to make it more appealing from a valuation perspective. One more company to join that bandwagon is JSW Energy. The board of JSW Energy approved re-organisation of its renewable and thermal businesses. Under the major terms of the restructuring, all existing and upcoming renewable energy businesses will be bucketed under JSW Energy Neo Ltd.

Now, JSW Energy Neo will be a subsidiary of JSW Energy. The idea here is to create a holding structure for the renewable portfolio which is not only efficient from the point of view of ROI and capital allocation but also from the point of view of management and valuations. Like in the case of Tata Power and NTPC, it is expected that this move will facilitate the unlocking of value so that eventually JSW Energy can look to placing stakes in the more sought after renewable business. The target is to achieve 20 GW renewable by year 2030.

7 Views

image
Sam Eswaran answered.
5 days ago
Follow

The latest idea in the power sector is to separate or to isolate the renewable power portfolio to make it more appealing from a valuation perspective. One more company to join that bandwagon is JSW Energy. The board of JSW Energy approved re-organisation of its renewable and thermal businesses. Under the major terms of the restructuring, all existing and upcoming renewable energy businesses will be bucketed under JSW Energy Neo Ltd.

Now, JSW Energy Neo will be a subsidiary of JSW Energy. The idea here is to create a holding structure for the renewable portfolio which is not only efficient from the point of view of ROI and capital allocation but also from the point of view of management and valuations. Like in the case of Tata Power and NTPC, it is expected that this move will facilitate the unlocking of value so that eventually JSW Energy can look to placing stakes in the more sought after renewable business. The target is to achieve 20 GW renewable by year 2030.

7 Views