JSW Infrastructure IPO: Infrastructure-Ports company IPO to begin from September 25; Key Details here

Team Updater September 18, 2023
JSW Infrastructure is into Infrastructure-Ports and is looking raise funds through Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 2800 crores

JSW Infrastructure is into Infrastructure-Ports and is looking raise funds through Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 2800 crores


IPO
JSW Infrastructure to raise around Rs 2,800 crores through public issue

JSW Infrastructure IPO is a public offering of shares by Sajjan Jindal and Sajjan Jindal Family Trust. The IPO will open on September 25 and will close on September 27. The price band is ₹113 to ₹119 per share and the lot size is 126 shares. The issue size is ₹2,800. crore. The shares are expected to be listed on NSE, BSE on October 06 (^). Some additional information that you may find useful are: Installed cargo handling capacity in India grew at a CAGR of 22.35% from 102.50MTPA as of March 31, 2020 to 153.43MTPA as of March 31, 2022. During the same period, cargo volumes handled in India grew at a CAGR of 34.97% from 34.01MMT to 61.96MMT. In addition to the operations in India, company operate two port terminals under O&M agreements for a cargo handling capability of 41 MTPA in the UAE as of December 31, 2022. : (**) - based on higher price band (^) indicative date


Promoters of the company are Sajjan Jindal and Sajjan Jindal Family Trust Currently promoters hold 96.42% stake in the company.

Quick Pointers


  • Company aims to raise between Rs 2,800 to 2,800 crs through this IPO.
  • The net proceeds of the issue will be utilized to 1) Investment in wholly owned Subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited, for prepayment or repayment, in full or part, of all or a portion of certain of their outstanding borrowings amounting to Rs. 880 crores and 2) Investment in wholly owned Subsidiary, JSW Jaigarh Port Limited, for financing its capital expenditure requirements for proposed expansion/upgradation works at Jaigarh Port as follows: a) LPG Terminal Project - Rs. 865.8 crores b) setting up an electric sub-station - Rs. 59.4 crores c) purchase and installation of dredger - Rs. 103.9 crores
  • Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 24-Sep-23.
  • Price band for the IPO has been fixed at Rs 113 to 119 per share and bid lot are in multiple of 126 shares. The implied market cap post-issue at Rs 23,871 to 24,990 crs.
  • As per the tentative schedule, allotment date of this IPO is most likely on October 03 and share are expected to be listed on NSE, BSE on October 06.
  • Company has direct peer competition in India'a port operation market, In Listed space peers includes Adani Ports and SEZ Limited.
  • JM Financial, Axis Capital, Credit Suisse Securities, DAM Capital, HSBC Securities and Capital Markets, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.

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About Company

JSW Infrastructure is promoted by Sajjan Jindal and Sajjan Jindal Family trust is in port-related infrastructure company in India. Company is the second largest commercial port operator in India in terms of cargo handling capacity in FY22 (Source: CRISIL Report). Company operate nine Port Concessions across India with an installed cargo handling capacity of 153.43 MTPA as of December 31, 2022. It also operate two port terminals under O&M agreements for a cargo handling capability of 41 MTPA in the UAE as of December 31, 2022.

Installed cargo handling capacity in India grew at a CAGR of 22.35% from 102.50MTPA as of March 31, 2020 to 153.43MTPA as of March 31, 2022. During the same period, cargo volumes handled in India grew at a CAGR of 34.97% from 34.01MMT to 61.96MMT. In addition to the operations in India, company operate two port terminals under O&M agreements for a cargo handling capability of 41 MTPA in the UAE as of December 31, 2022.

About Industry

India’s port traffic in India is expected to grow by 8% to 9% in Fiscal 2023, compared to a growth of 4.9% in Fiscal 2022. Over Fiscals 2024 to 2028, growth at Indian ports is expected to be between 3% and 6%. The Sagarmala programme aims at enhancing India’s port capacity to over 3,300 MTPA by 2025. According to the Ministry of Shipping, this would include 2,219 MTPA of capacity at Major Ports and 1,132 MTPA at Non-Major Ports by 2024 -2025. Further, there is a positive outlook for the underlying industries of our customers engaged in the business of steel, power and cement.


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Source: DRHP, RHP, Company, Company Website, Industry | Logo/Images published in the article may be copyright of respective companies.

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