JSW Infrastructure, part of the JSW Group, is set to launch its initial public offering (IPO) on September 25, with the aim to raise Rs 2,800 crore (Rs 1 crore = $120,594). The public issue will close for subscription on September 27, while the anchor book, a part of the qualified institutional buyers (QIB) portion, will open for a day on September 22. The price band for the offer will be announced in the coming days.
The company intends to use the net proceeds from the fresh issue for repaying debts amounting to Rs 880 crore. A total of Rs 1,029.04 crore will be allocated towards expansion or upgradation works at Jaigarh Port, owned by subsidiary JSW Jaigarh Port. The remaining funds will be used for general corporate purposes and expansion at Mangalore Container Terminal (Mangalore container project), owned by another subsidiary, JSW Mangalore Container Terminal.
As of June 2023, JSW Infrastructure's total borrowings on a consolidated basis stood at Rs 4,228.39 crore. The 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.
JSW Infrastructure claims to be India's fastest-growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY21-FY23. It also holds the title of being the second-largest commercial port operator in India in terms of cargo handling capacity in FY23.
The company has expanded its operations from one port concession at Mormugao, Goa acquired by the JSW Group in 2002, to nine port concessions across India as of June 2023. It also operates two port terminals under operation and maintenance agreements for a cargo handling capability of 41 MTPA in the UAE as of June 2023.
In the fiscal year ending March 2023, JSW Infrastructure recorded a 126.8 percent on-year growth in net profit at Rs 749.5 crore, with revenue from operations increasing by 40.5 percent to Rs 3,194.7 crore during the same period.
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. Trading in the equity shares of JSW Infrastructure on the BSE and NSE will commence from October 6, as per the IPO schedule.
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