JSW Infrastructure Ltd has initiated a fresh fundraising exercise by launching a qualified institutional placement of up to 23 crore shares worth Rs 7,502.7 crore, aiming to mobilise capital from institutional investors.
The QIP will be executed in one or more tranches, according to an exchange filing. The QIP comprises of fresh issue of Rs 6,555 crore and offer for sale of Rs 947.7 crore, according to sources.
Alongside the QIP, the company's promoter group, Sajjan Jindal Family Trust, will sell up to 3.3 crore shares through an offer for sale.
The fresh issue will lead to a dilution of 9.9% stake. The OFS comprises of 1.4% of equity, the sources said.
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JSW Infrastructure has set the floor price for its OFS at Rs 290.35 per share, which is below the company's closing market price of Rs 308.50 on June 22. The indicative issue price is Rs 285, a 7% discount to the CMP, according to sources.
The pricing indicates that the company has offered a discount to attract institutional investors and ensure wider participation in the share sale.
SBI Capital, JM Financial, Avendus Capital, Citigroup, HSBC Securities and Jefferies are bankers to the deal, according to sources.
The fundraising exercise marks a significant step by JSW Infrastructure as it seeks to strengthen its capital base and support future growth plans.
The company, part of the JSW Group, operates ports and logistics infrastructure across key locations and has been expanding its capacity to tap rising demand in India's infrastructure sector.
The QIP route will allow JSW Infrastructure to raise funds from institutional buyers without diluting promoter control significantly, while the OFS will provide an exit opportunity to the promoter entity. The move comes as infrastructure companies continue to focus on scaling operations amid increased government spending on logistics, ports, and connectivity projects.
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JSW Infrastructure's capital raising initiative is expected to provide additional financial flexibility for expansion and strategic investments.
The company has not disclosed the final issue price for the QIP yet, with pricing expected to be determined after the institutional bidding process.
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