JSW Infrastructure has announced the price band for its upcoming initial public offering (IPO) at Rs 113-119 per share. The IPO, which represents the ports business of the JSW Group led by Sajjan Jindal, is set to be open for subscription from September 25 to September 27.
This IPO marks the first offering from the JSW Group in nearly 13 years and consists entirely of fresh issue shares with a total value of Rs 2,800 crore. The company had submitted the draft prospectus to SEBI in May of this year.
JSW Infrastructure has distinguished itself as the fastest-growing port-related infrastructure company in terms of installed cargo handling capacity and cargo volumes during FY21-23. It also ranks as the second-largest domestic commercial port operator by cargo handling capacity in FY23.
The company’s business operations have expanded significantly, encompassing nine port concessions along both the eastern and western coasts of India. This diversification has made it a well-rounded maritime ports company. As of June 2023, these nine port concessions collectively have an installed cargo handling capacity of 158.43 million metric tonnes per annum (MTPA). Additionally, the company manages two port terminals under operations and maintenance (O&M) agreements in the UAE, with a cargo handling capacity of 41 MTPA as of June 2023.
The net proceeds from the IPO will be allocated towards debt repayment, financing capital expenditure, and other general corporate purposes.
For the three months ending in June 2023, the company reported a 7% year-on-year (YoY) increase in revenue from operations, reaching Rs 878 crore. Net profit for the same period grew by 68% to Rs 322 crore.
In India, the company’s installed cargo handling capacity exhibited a compound annual growth rate (CAGR) of 15.27% from FY21 to FY23, while cargo volumes handled during the same period saw a remarkable CAGR of 42.76%.
The IPO will be conducted through a book-building process, with 75% of the issue reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.
The IPO’s lead bankers include JM Financial, Axis Capital, Credit Suisse Securities, DAM Capital Advisors, HSBC Securities, ICICI Securities, Kotak Mahindra Capital, and SBI Capital, with KFin Technologies serving as the registrar.
