JSW Energy Shares Gain After Power Purchase Agreement With Bangalore Firm
The agreement, entered into by JSW Energy's wholly-owned stepdown subsidiary, pertains to a 300-MW solar capacity project.
Shares of JSW Energy Ltd. rose on Friday after it entered into a Power Purchase Agreement with Bangalore Electricity Supply Co.
The agreement, entered into by JSW Energy's wholly-owned stepdown subsidiary, pertains to a 300-MW solar capacity project that was awarded by Karnataka Renewable Energy Development Ltd., according to an exchange filing.
The project, which was officially announced on July 22, is set at a tariff of Rs 2.89 per kWh, and it extends until FY44. Located in Karnataka’s Pavagada Solar Park, it is slated for commissioning within the next 18 months.
This project is part of JSW Renew Energy's expanding solar pipeline, which now totals 3.2 GW. To date, the company has signed PPAs for 1.3 GW of this capacity.
Shares of the company rose as much as 2.01% before paring gains to trade 0.19% higher at Rs 712.05 apiece at 10:45 a.m., compared to a 0.23% gain in the NSE Nifty 50.
The stock has risen 73.8% year-to-date. The relative strength index was at 54.
Of the 13 analysts tracking the company, four maintained a 'buy' rating, five recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average 12-month consensus analysts' price target implies a downside of 11.5%.
