Here is the reason for the surge in JSW Energy stock price

JSW Energy is in talks with major Chinese automakers to energise the possible launch of its new EV brand, and the latest Rs 12.5 crore acquisition is in line with the 2025 vision

JSW Energy share price surge Representative image | Shutterstock

New Year celebrations have come early for JSW Energy in the stock market, with shares rising as high as 7.7 per cent or Rs 674 apiece in Monday morning trade, owing to reports of the group planning to launch its own line of electric cars and trucks by 2025.

Around 90 lakh shares changed hands in the first two hours of the market, with a traded value of about Rs 590 crore.

JSW Energy had been biding its time, but the move to enter the EV market could be ascertained from its recent deals. Last Friday, JSW Energy announced its plans to buy a 4.7GW renewable energy platform for Rs 12.468 crore (around USD 1.47 billion) in enterprise value from O2 Power through its unit.

"This landmark acquisition strengthens our positioning as a leading player in India's energy sector," JSW CEO Sharad Mahendra then stated. The deal has yet to receive relevant approvals, including the one from the Competition Commission of India (CCI).

"The renewable assets under this transaction will be acquired by JSW Neo Energy Limited, a wholly owned subsidiary of the company. The acquisition would help the company in achieving its renewable-led capacity growth target of 20GW before FY 2030," said JSW Energy in a statement.

The Sajjan Jindal-led steel-to-paints conglomerate was also reported (by TOI) on Friday to be in talks with Chinese automaker Geely to launch new offerings in the EV market in India. Last year, JSW entered a USD 1.5 billion joint venture with Chinese auto giant SAIC Motor to build and sell MG electric vehicles in India. This year, JSW also bought a 35 per cent stake in MG Motor India. 

However, signs point to the group not very keen on the association. In a recent interview with the Financial Times, Jindal affirmed that he did not want JSW to operate as an "outpost" to the Chinese firm and, instead, manufacture products, for India, in the country.

Multiple reports pointed to the company's intent to launch its own EV line, and a recent report by ET stated that the group looks to invest at least Rs 27,200 crore in Maharashtra to produce around 5 lakh electric cars and 1 lakh commercial vehicles (e-trucks) per year. The latest renewable energy acquisition stacks up with this vision, and the markets seem to have responded positively to JSW Energy's 2025 outlook.

   

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