The shares of JSW Energy on Tuesday settled with gains of over 9%, after which the market capitalisation of the company improved by over Rs 1,000 crore. The firm recently said it has bought power assets of Jaiprakash Power Ventures Ltd.
During the day, the scrip climbed 11.29% to touch its intra-day high at Rs 75.40 on the BSE. It closed at Rs 74.25, up 9.59%, on the BSE.
Following the uptick, the market capitalisation of the company improved by Rs 1,065.41 crore to Rs 12,177.41 crore.
Meanwhile, shares of Jaiprakash Power Ventures also witnessed good demand on the bourses. The stock climbed 5.39% to settle at Rs 5.87 at BSE. The company's shares rose by 8.61% to touch its intra-day high of Rs 6.05.
Market analysts said the uptrend in the counter was largely a knee-jerk reaction to the project acquisition announcement.
Moreover, the broader market was also trading in the positive territory, which also helped investor sentiments.
The 30-share benchmark index Sensex on Tuesday surged 424.06 points to close at 25,317.87, while the wider Nifty climbed 129.45 points to 7,688.25.
The two projects bought by JSW Energy are 300 MW Baspa-II and 1,091 MW Karcham Wangtoo.
Besides, JSW Energy has entered into a binding agreement with JPVL to acquire 500 MW Bina thermal power plant in Madhya Pradesh.
"The acquisition helps in diversifying the power generation portfolio with high hydro power assets, besides increasing the share of long-term PPA (power purchase agreement) in our basket," JSW Energy Chairman and Managing Director Sajjan Jindal said in a statement.
"We plan to acquire Bina Power project, that will further strengthen the business model of JSW Energy and also enhance our capacity to over 5,000 MW," he added.