LIC-Backed Blue-Chip Stock In Focus As Subsidiary Completes Rs 753.89 Cr Bonus Shares

As of Friday's closing session, JSW Energy Ltd., a blue chip firm in the power industry, encounters a market capitalization of Rs 71,444.71 Cr. Following the company's announcement that its subsidiary JSW Energy (Barmer) Limited (JSWEBL) executed a bonus issue of 75,38,93,332 fully paid up equity shares of Rs. 10 each, amounting to Rs. 753.89 Cr., market observers will be keeping a close eye on JSW Energy shares, which have surged 48% YTD.

"Pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we hereby inform you that JSW Energy (Barmer) Limited ("JSWEBL"), a wholly owned material subsidiary of the Company, has completed a Bonus Issue of 75,38,93,332 fully paid up equity shares of Rs.10 each amounting to Rs. 753,89,33,320 (Rupees Seven Hundred Fifty Three Crore Eighty Nine Lakh Thirty Three Thousand Three Hundred and Twenty only). The allotment of the Bonus Shares to the Company was done by the Finance Committee of JSWEBL," said JSW Energy in a stock exchange filing.

JSW Energy (Barmer) has issued bonus shares in the ratio of 1:3 [i.e. 1 (One) equity share for every 3 (Three) equity shares held] and the issuance of bonus shares is out of capital redemption reserve and retained earnings. The pre-issue share capital of the company is 2,26,16,79,994 fully paid up equity shares of Rs. 10 each amounting to Rs. 22,61,67,99,940/- and post-issue share capital is 3,01,55,73,326 fully paid up equity shares of Rs. 10 each amounting to Rs. 30,15,57,33,260/-.
On or before 12th January 2024 is the estimated date by which such bonus shares would be credited/dispatched.

Recently, the board of directors has accepted Sharad Mahendra's nomination as a Whole-Time Director, assuming the roles of joint managing director and CEO. Sajjan Jindal headed JSW Energy announced this on Friday, December 1. Prashant Jain, the current occupant, will hold this role until January 31, 2024. On February 1, 2024, Mahendra will then assume authority. He was formerly Chief Operating Officer for the energy business section of JSW Energy in 2017 and most recently worked as CEO of JSW Steel Coated Products Ltd, a 100% subsidiary of JSW Steel Ltd.

On Friday, the shares of JSW Energy closed on the BSE at Rs 434.40 apiece down by 3.65% from the previous close of Rs 450.85. The scrip reached a 52-week-high of Rs 476.65 on (08/12/2023) and a 52-week-low of Rs 204.80 on (27/02/2023). During Q2FY24, the company reported promoters' shareholding of 73.39%, FIIs stake of 8.38%, DIIs stake of 9.69%, public stake of 8.33% and others stake of 0.22%. As per the shareholding pattern of JSW Energy for the July to September 2023 quarter, insurance giant LIC held 14,91,92,600 shares or 9.07% stake in the company.