JSW Infrastructure IPO: All You Need To Know
The proceeds of the IPO will be used for repayments of borrowings, financing capex for expansion and general corporate purposes.
JSW Infrastructure will launch its initial public offering on Sept. 25. The port-related infrastructure company plans to raise up to Rs 2,800 crore via a fresh issue.
The issue will comprise a fresh issue of 23.53 crore equity shares, and the price band is fixed in the range of Rs 113–119 per share.
Anchor investor bidding date: Sept. 22.
Issue opens: Sept. 25.
Issue closes: Sept. 27.
Total issue size: Rs 2,800 crore.
Face value: Rs 2 per share.
Fresh issue shares: 23.53 crore shares.
Price band: Rs 113–119 per share.
Lot size: 126 shares.
Listing: BSE and NSE.
JSW Infrastructure is the fastest-growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY2021-23, and the second-largest commercial port operator in India in terms of cargo handling capacity in FY2023.
The company provides maritime-related services, including cargo handling, storage solutions, logistics services, and other value-added services, to its customers and is evolving into an end-to-end logistics solutions provider.
The company's operations expanded from one port concession in 2002 to nine port concessions as of June 30, 2023.
The installed cargo handling capacity of the company in India stands at 158.43 MTPA as of March 31, 2023, and the cargo volumes handled in India stand at 92.83 MMT.
Use of Proceeds
Prepayment or repayment of debt through investment in the subsidiaries JSW Dharamtar Port and JSW Jaigarh Port: Rs 880 crore
Financing capital expenditure through investment in subsidiary JSW Jaigarh Port for expansion/ upgradation works at Jaigarh Port: Rs 1,029 crore
Financing capital expenditure through investment in subsidiary JSW Mangalore Container Terminal for expansion: Rs 151 crore
General corporate purposes.
The company relies on concession and licence agreements from government and quasi-governmental organisations to operate and grow the business. It has several obligations under these agreements, and a breach of the terms could lead to termination.
A substantial portion of the volume of cargo handled by the company is dependent on a few types of cargo, and a significant reduction in or the elimination of such cargo could adversely affect profitability.
The company and its certain subsidiaries have incurred losses in the past.
The company operates in a capital-intensive industry, and its current and future expansion plans may require significant capital that it may be unable to raise.
The company has substantial indebtedness, which requires significant cash flows to service and limits its ability to operate freely.
The company has yet to place orders for certain equipment and certain civil works for the expansion of projects proposed to be funded through this issue.