Renewable Energy M&A: JSW Group acquires Indian renewables company Mytrah Energy for $1.32 billion

published on 11 August 2022
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Established in 2009, Mytrah’s 1.75 GW portfolio comprises 17 wind farms and 21 ground-monitored solar farms spread across 9 states, with 1.33 GW of onshore wind and 422 MW of solar assets in operation. The assets are contracted primarily on the regulated market and have an average remaining tenor of 17.7 years, with an average tariff of $0.061/kWh. JSW reported that the portfolio has an EBITDA of $207 million over the last-twelve-months (LTM). Adani Green, Torrent Power, ReNew Power, Ayana Power, Virescent Infrastructure, O2 Power, Edelweiss Infrastructure, Brookfield and CPPIB had also expressed interest in acquiring Mytrah. The deal marks the 3rd largest transaction, by value, for renewable generating assets in India.

The recent move JSW Group mirrors similar ones taken by peers Tata Power and Adani, other large-cap industrial conglomerates operating in India that have recently stepped up their renewables activity. With this deal, JSW’s operational and under-construction power generation capacity reaches 9.1 GW, 65% of which is renewables-based. The company targets to reach 20 GW of generation capacity by 2030, with the share of renewable electricity increasing to 85%. In Mar’21, a senior JSW executive stated that the company was at the end of a prolonged de-leveraging cycle and plans to start leveraging again to pursue growth in renewables. The incremental cash flows from the existing portfolio will ensure a robust leverage ratio and gearing, further supporting this strategy.

India has emerged as the most attractive market in Asia for renewable energy investments – since 2017, the country accounts for a staggering $21.2 billion of transactions for generation assets, representing ~40% of the cumulative deal value in the continent. The country also accounts for 30% of Asia’s deal volume during the same period. While majority of the renewables investments in India are led by large integrated power companies and industrial conglomerates, India showcases the maximum growth in penetration of private equity/venture capital, in Asia, during the last 3 years. Macquarie, BlackRock, Actis, Global Infrastructure Partners (GIP) and KKR are some of the firms that have made major moves in the country during the period.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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