JSW Neo Energy, a subsidiary of JSW Energy, has announced a definitive agreement to acquire a 4,696MW renewable energy platform from O2 Power Pooling, a joint venture between EQT Infrastructure and Temasek.

The entities to be acquired by JSW Energy have a consolidated operation and under development renewable energy portfolio of 4.7 GW in India.

Building new plants involves a gestation period. There are inordinate delays in land acquisition, regulatory clearances, arranging for power evacuation etc. O2 Power has everything in place and has already tied up for offtake of power.

The uptick in JSW Energy share price came after its arm, JSW Neo, signed a definitive agreement with O2 Power to acquire 4,696 MW of renewable energy (RE) platform for $1.47 billion

The JSW Energy stock reacted positively to the brokerage reports and opened over 4% in the green on Monday morning.

JSW Energy shares surged 8% following its $1.47 billion deal to acquire O2 Power’s 4,696 MW renewable energy platform, boosting its capacity and positioning in India’s renewable energy sector.

JSW Energy acquired O2 Power, a renewable energy platform, for ₹12,468 Crore, making it the company’s largest acquisition to date. The acquisition will increase JSW Energy’s generation capacity by 23%, from 20,012 megawatts (MW) to 24,708 MW.

JSW Energy shares made a strong rally on Monday. The company’s shares surged 7.7 per cent on the BSE to hit an intraday high of Rs 673.05 apiece. On the NSE, the firm’stock climbed to an intraday high of Rs 674 per share.

Brokerages are bullish on the shares of JSW Energy after the company's wholly-owned subsidiary, JSW Neo Energy signed a major deal.