JSW Infrastructure has fixed price band of ₹113-119 per share for its initial public offering (IPO), which will open for subscription on September 25. The IPO is going to be Sajjan Jindal-led JSW Group’s first public issue in nearly 13 years, after JSW Energy was listed in January 2010. The public offer of ports business of JSW Group is completely a fresh issue of 23.53 crore shares, which at the upper end of price band will translate into issue size of ₹2,800 crore.
The three-day public issue will close on September 27, while the shares are set to be listed on stock exchanges BSE and NSE tentatively on October 6. The allotment of shares will be finalised on October 3, while successful bidders will get the shares credited into their demat accounts on October 5.
Applicants can bid for a minimum of 126 shares and in multiples thereof, which means the minimum and maximum investment amount for retail investors would be ₹14,994 and ₹194,922, respectively. As per SEBI norms, a retail investor is limited to invest only up to ₹2 lakh.
JSW Infra has reserved up to 75% of the issue for qualified institutional buyers, 15% for non-institutional investors, and remaining 10% for retail investors.
The company intends to use capital raised from IPO proceeds mainly for repaying debts and expansion of LPG Terminal Project. As per the offer document, it will use ₹880 crore for debt repayment; ₹865.75 crore to finance capital expenditure requirements for an LPG terminal project; ₹59.4 crore for setting up an electric sub-station; ₹103.88 crore for the purchase and installation of a dredger, and finance ₹151.04 crore for the proposed expansion at Mangalore Container Terminal.
Established in 2006, JSW Infrastructure provides maritime-related services such as cargo handling, storage solutions, and logistics support services. Sajjan Jindal Family Trust owns 90.91% stake in the port-related infrastructure company, while JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex hold remaining 9.08% shares in the firm. Post listing, promoters’ stake in the company will come down to 85.62%.
As on June 30, 2023, the company’s installed cargo handling capacity was 158.43 million tonnes per annum (MTPA). Its operations expanded from one port concession at Mormugao, Goa (acquired by the JSW Group in 2002) where it commenced operations in 2004, to nine Port Concessions as of June 30, 2023. It has a diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast.
On the financial front, the company posted a 126.8% growth in net profit at ₹749.5 crore for the financial year ended March 2023 (FY23) as compared to ₹330.44 crore in the last fiscal (FY22). The revenue from operations jumped 41.7% to ₹3,372.85 crore versus ₹2,378.74 crore in the year ago period.
JM Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd), HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited are the book running lead managers of the JSW Infrastructure IPO, while Kfin Technologies Limited is the registrar for the issue.
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