JSW Infrastructure IPO: Launch on September 25
JSW Infrastructure, owned by Sajjan Jindal, is gearing up for its much-anticipated initial public offering (IPO) set to launch on September 25. This strategic move aims to raise a substantial ₹2,800 crore through a fresh issue, without any offer-for-sale component.
Investors and stakeholders are eagerly awaiting this opportunity, with the public subscription period scheduled to conclude on September 27. For institutional investors, the anchor book, a part of the Qualified Institutional Buyers (QIB) portion, will be open for a day on September 22.
As anticipation builds, the company will soon announce the price band for the offering. This IPO carries significant implications for JSW Infrastructure’s future endeavors.
JSW Infrastructure IPO Objectives:
The primary allocation of the net proceeds from this fresh issue will be dedicated to repaying debts amounting to ₹880 crore. Additionally, ₹1,029.04 crore will be directed toward expansion and upgrades at Jaigarh Port, a subsidiary under the banner of JSW Infrastructure.
As of June 2023, the company’s consolidated borrowings stood at ₹4,228.39 crore. Furthermore, fresh issue proceeds will fuel the expansion of the Mangalore Container Terminal, a subsidiary known as JSW Mangalore Container Terminal, with an investment of ₹151.05 crore. The remaining funds will be allocated for general corporate purposes, as detailed in the RHP.
To ensure broad participation, JSW Group has earmarked 75 percent of the offering for Qualified Institutional Buyers (QIBs), with 15 percent allocated to high-net-worth individuals (HNIs) and the remaining 10 percent for retail investors.
JSW Infrastructure Financial Performance:
JSW Infrastructure has exhibited remarkable financial growth, recording a staggering 126.8 percent year-on-year increase in net profit, amounting to ₹749.5 crore for the fiscal year ending in March FY23. Concurrently, revenue from operations surged by 40.5 percent, reaching ₹3,194.7 crore during the same period. In the quarter ending June FY24, net profit witnessed a robust 67.3 percent year-on-year growth, tallying ₹322.2 crore, with revenue also registering a healthy increase of 7.1 percent, totaling ₹878 crore.
About JSW Infrastructure:
JSW Infrastructure has earned its reputation as the fastest-growing port-related infrastructure company. The company’s impressive track record includes substantial growth in installed cargo handling capacity and cargo volumes handled from FY21 to FY23. It now proudly ranks as India’s second-largest commercial port operator, based on cargo handling capacity for FY23.
Starting from a single port concession in Mormugao, Goa, acquired by the JSW Group in 2002, JSW Infrastructure has expanded its operations to encompass nine port concessions across India as of June 2023. The company’s installed cargo handling capacity in India has grown at a CAGR of 15.27 percent during FY21-FY23, reaching 158.43 MTPA (million tonnes per annum) as of March FY23. During this same period, cargo volumes in India experienced remarkable growth at a CAGR of 42.76 percent, totaling 92.83 MMT (million metric tonnes).
Furthermore, JSW Infrastructure operates two port terminals through operation and maintenance (O&M) agreements in the UAE, boasting a cargo handling capability of 41 MTPA as of June 2023.
Sajjan Jindal Family Trust holds the majority shareholding at 90.91 percent in this port-related infrastructure company, while JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex collectively own 9.08 percent shares in the firm.
JSW Infrastructure IPO Listing Date and Key Players:
The IPO’s allotment is set to be finalized by the company, in collaboration with the BSE, by October 3. Eligible investors can anticipate their shares being credited to their demat accounts by October 5. Any potential refunds for anchor investors or unblocking of funds from ASBA accounts will take place by October 4.
Excitingly, trading of JSW Infrastructure’s equity shares on both the BSE and NSE will commence from October 6, following the IPO schedule.
This landmark IPO is being orchestrated with the support of renowned book running lead managers, including JM Financial, Axis Capital, Credit Suisse Securities (India), DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities, Kotak Mahindra Capital Company, and SBI Capital Markets. Kfin Technologies is proudly serving as the registrar to the offer, ensuring a seamless and efficient IPO process. Don’t miss the opportunity to be part of this significant financial milestone as JSW Infrastructure ventures into the public domain on September 25.
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