JSW Infrastructure IPO to open on September 25, to raise Rs 2,800 crore via fresh issue

JSW Infrastructure IPO to open on September 25

Sajjan Jindal-owned JSW Infrastructure is ready to launch its initial public offering on September 25, to raise Rs 2,800 crore. The offer comprises only a fresh issue by the company and does not have an offer-for-sale component.

The public issue will be closed for subscription on September 27, while the anchor book, a part of QIB portion, will be opened for a day on September 22.

The price band for the offer will be announced in coming days.

Objectives of Fresh Issue

The company will make use of net fresh issue proceeds for repaying debts amounting to Rs 880 crore, and Rs 1,029.04 crore will go towards expansion or upgradation works at Jaigarh Port, owned by subsidiary, JSW Jaigarh Port.

Its total borrowings on a consolidated basis stood at Rs 4,228.39 crore as of June 2023.

Further, the expansion at Mangalore Container Terminal (Mangalore container project) owned by subsidiary, JSW Mangalore Container Terminal, worth Rs 151.05 crore will be done via fresh issue proceeds. And the remaining amount will be used for general corporate purposes, as per the information available in the RHP.

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The JSW Group company has reserved 75 percent of the offer size for qualified institutional buyers (QIB), 15 percent for high networth individuals and the remaining 10 percent for retail investors.

About Company

JSW Infrastructure claimed to be the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY21-FY23, and the second largest commercial port operator in India in terms of cargo handling capacity in FY23.

The diversified maritime ports company has expanded its operations from one port concession at Mormugao, Goa acquired by the JSW Group in 2002, to nine port concessions as of June 2023 across India.

Its installed cargo handling capacity in India grew at a CAGR of 15.27 percent during FY21-FY23 to 158.43 MTPA (million tonnes per annum) as of March FY23. During the same period, cargo volumes in India grew at a CAGR of 42.76 percent to 92.83 MMT (million metric tonne).

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In addition, the firm also operates two port terminals under O&M (operation and maintenance) agreements for a cargo handling capability of 41 MTPA in the UAE as of June 2023.

Sajjan Jindal Family Trust has 90.91 percent shareholding in the port-related infrastructure company, while JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex hold 9.08 percent shares in the firm.

JSW Infrastructure has recorded a 126.8 percent on-year growth in net profit at Rs 749.5 crore for the year ended March FY23, with revenue from operations increasing by 40.5 percent to Rs 3,194.7 crore during the same period. In the quarter ended June FY24, the net profit grew by 67.3 percent year-on-year to Rs 322.2 crore and revenue increased by 7.1 percent to Rs 878 crore.

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Listing Date

The basis of allotment of IPO shares will be finalised by the company in consultation with the BSE by October 3, and the shares will be credited to demat accounts of eligible investors by October 5. The Initiation of refunds (if any, for anchor investors) or unblocking of funds from ASBA account will take place by October 4.

The trading in the equity shares of JSW Infrastructure on the BSE and NSE will be commenced with effect from October 6, as per the IPO schedule.

JM Financial, Axis Capital, Credit Suisse Securities (India), DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities, Kotak Mahindra Capital Company and SBI Capital Markets are the book running lead managers to the issue. Kfin Technologies is the registrar to the offer.