JSW Infrastructure Limited, India's second-largest port operator by cargo handling capacity, has set the price band for its initial public offering (IPO) at Rs 113-119 ($1 = Rs 83.05) per share. The IPO, which opens for bidding on Friday, is expected to raise Rs 2,800 crore ($376 million). This marks JSW Group's first IPO in 13 years; the conglomerate last listed its energy business separately in 2010.
The offer comprises only a fresh issue by the company and does not have an offer-for-sale component. It has reserved 10 percent of the offer for retail investors, 75 percent for qualified institutional buyers, and 15 percent for non-institutional investors. One lot consists of 126 shares and the application amount totals Rs 14,994.
The funds raised through the IPO will be used to repay debts amounting to Rs 880 crore and allocate Rs 1,029.04 crore towards expansion or upgradation works at Jaigarh Port, owned by subsidiary JSW Jaigarh Port.
The Sajjan Jindal Family Trust holds a majority stake of 90.91 percent in the port-related infrastructure company. The remaining shares are held by JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex who collectively hold a 9.08 percent stake.
As of fiscal year ending March FY23, JSW Infrastructure recorded a significant on-year growth in net profit at Rs 749.5 crore ($100 million), with revenue from operations increasing by 40.5 percent to Rs 3,194.7 crore ($427 million). The installed cargo handling capacity stood at an impressive 158.43 million tonnes per annum for multi-commodity cargo, marking a growth of 40% in cargo volumes since FY20.
The company's third listing on the bourses follows its energy and steel verticals, with JM Financials serving as the lead banker to the issue. The IPO announcement was made in a press meet on Monday.
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