JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has agreed to acquire three Special Purpose Vehicles (SPVs) from Hetero Group, totaling 125 MW of renewable energy capacity: Hetero Wind Power Limited, Hetero Wind Power (Pennar) Private Limited, and Hetero Med Solutions Limited, with a combined revenue from operations of INR 143.5 crores in FY 2023-24.
This acquisition does not involve any related party transactions. The entities operate within the renewable power generation sector, and the acquisition aligns with JSW Neo Energy’s goal to reach a capacity of 10 GW by FY 2025 and 20 GW by 2030. Regulatory approvals will include standard lender approvals, and the transaction is expected to close within 90 days, contingent upon certain conditions.
The acquisition will be executed for cash, with an Enterprise Value of INR 630 crores, subject to net working capital adjustments. JSW Neo Energy will acquire 100% of Hetero Wind Power (Pennar) Private Limited and Hetero Med Solutions Limited, as well as approximately 74% of Hetero Wind Power Limited, where a captive consumer will retain about 26%.
All three SPVs, incorporated under Indian law, have a combined capacity of 125 MW and operate primarily in Andhra Pradesh and Maharashtra, backed by long-term power purchase agreements. The audited revenue from operations for the last three fiscal years was INR 126.0 crores in FY2022, INR 125.9 crores in FY2023, and INR 143.5 crores in FY2024.