JSW Infrastructure files draft IPO papers with Sebi to raise Rs 2,800 crore

JSW

JSW Infrastructure Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) to raise around Rs 2,800 crore through an initial public offering. The entire IPO will be a pure fresh issue.

Out of the total proceeds Rs 880-crore public issue will be used to invest in its arm JSW Dharamtar Port Pvt Ltd and JSW Jaigarh Port Ltd for repayment of their debt. As of December 2022, JSW Dharamtar Port has a total debt of Rs 4303.90 crore.

The company will use part of the proceeds for investment in its arm JSW Jaigarh Port Ltd for financing its capital expenditure requirement for proposed expansion and upgrade. It will use Rs 868.03 crore for LPG Terminal project, Rs 59.40 crore will be used to set up an electric sub station, Rs 102.58 crore will be used to purchase and installation of dredger.

The firm will also use Rs 151.63 crore for investment in its arm JSW Mangalore Container Terminal Pvt Ltd for financing its capital expenditure requirement.

Read: Exclusive | JSW Infra will be a listed pvort company in two years: CEO

JM Financial, Axis Capital, Credit Suisse, Dam Capital Advisors, HSBC, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets are the lead managers to the issue.

JSW Infrastructure offers a range of maritime services such as cargo handling, storage solutions, logistics services, and other value-added services to its clients. The company is expanding to become a comprehensive logistics solutions provider. In line with this goal, it develops and manages ports and port terminals under Port Concession agreements. These concessions have extended periods, usually lasting between 30 to 50 years, which provide the company with a long-term outlook on revenue streams.

As of December 2022, JSW Infrastructure handles nine port concessions in India with cargo handling capacity at 153.43 MTA, while the cargo volume it handled was 61.96 MMT. Net debt as of December 2022 was at Rs 2875.31 crore while operating cash flow stood at Rs 1095.27 crore.

For FY22, revenue from operations stood at Rs 2273.06 crore against Rs 1603.57 crore a year ago. Net profit for the year stood at Rs 330.44 crore versus Rs 284.62 crore last year. EBITDA margin for the year was at 51.08 percent from 53.10 percent a year ago.

JSW Infrastructure is a member of the JSW Group, a multinational conglomerate that has diversified assets across several sectors, including steel, energy, infrastructure, cement, paints, venture capital, and sports. As part of the JSW Group, JSW Infrastructure has benefited from receiving initial cargo from its Anchor Customers, which helped to expedite the ramp-up of its assets and improve the utilization of its capacities.

Furthermore, JSW Infrastructure anticipates that it will continue to benefit from the growth of various businesses within the JSW Group. For instance, JSW Steel is aiming to increase its installed capacity from 27.7 MTPA in Fiscal 2023 to up to 37.00 MTPA in Fiscal 2025. Similarly, JSW Energy aims to achieve up to 10 GW in Fiscal 2025 from 4.8 GW in Fiscal 2023. JSW Infrastructure expects such expansions to augment the growth of cargo volumes across its current assets and provide a foundation for future growth at new locations.