JSW Infrastructure, owned by Sajjan Jindal, is set to launch its IPO- initial public offering on September 25, with the aim of raising Rs 2,800 crore. This upcoming IPO in India exclusively consists of a fresh issue and does not include an offer-for-sale component.
Key Highlights- JSW Infrastructure IPO
- JSW Infrastructure IPO opens on Sep 25, targeting Rs 2,800 Cr via a fresh issue.
- Subscription window closes on Sep 27, while the QIB anchor book opens on Sep 22.
- Proceeds to repay Rs 880 Cr in debt and expand Jaigarh Port and Mangalore Container Terminal.
- Offer allocation: 75% for QIBs, 15% for HNIs, and 10% for retail investors.
- JSW Infrastructure: Fastest-growing port infrastructure company in India.
- Exceptional financial performance: Net profit up 126.8% YoY for FY23.
Subscription and Anchor Book Details
The IPO subscription window will close on September 27, while the anchor book, part of the Qualified Institutional Buyer (QIB) portion, will be accessible for a single day on September 22.
The pricing band for the offer will be announced shortly.
Utilisation of Fresh Issue Proceeds
The net proceeds from the fresh issue of the JSW Infrastructure IPO will serve two primary purposes:
Debt Repayment and Jaigarh Port Expansion
A substantial portion, Rs 880 crore, will be allocated towards debt repayment, while an additional Rs 1,029.04 crore will facilitate expansion and upgrading efforts at Jaigarh Port, owned by the subsidiary JSW Jaigarh Port.
Mangalore Container Terminal Expansion
The JSW Group subsidiary, JSW Mangalore Container Terminal, will receive Rs 151.05 crore from the fresh issue proceeds to fund the expansion of the Mangalore Container Terminal project. The remaining funds will be dedicated to general corporate purposes, as outlined in the RHP.
JSW Infrastructure has earmarked 75 percent of the offer size for Qualified Institutional Buyers (QIB), 15 percent for High Net Worth Individuals (HNI), and the remaining 10 percent for retail investors.
About JSW Infrastructure
JSW Infrastructure claims the title of the fastest-growing port-related infrastructure company in terms of installed cargo handling capacity and cargo volumes during FY21-FY23. In FY23, it also stood as the second-largest commercial port operator in India based on cargo handling capacity.
Expanding from a single port concession in Mormugao, Goa, acquired by the JSW Group in 2002, the company now holds nine port concessions across India as of June 2023.
Their installed cargo handling capacity in India grew at a CAGR of 15.27 percent during FY21-FY23, reaching 158.43 MTPA by March FY23. Concurrently, cargo volumes in India grew at an impressive CAGR of 42.76 percent, totaling 92.83 MMT during the same period.
In addition, JSW Infrastructure operates two port terminals under operation and maintenance agreements, boasting a cargo handling capability of 41 MTPA in the UAE as of June 2023.
Shareholding and Financial Performance
Sajjan Jindal Family Trust holds a dominating 90.91 percent share in JSW Infrastructure, while JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex collectively own 9.08 percent of the company’s shares.
JSW Infrastructure reported exceptional financial growth, with a 126.8 percent YoY increase in net profit, reaching Rs 749.5 crore for the fiscal year ending in March FY23. Their revenue from operations also surged by 40.5 percent to Rs 3,194.7 crore during the same period. In the quarter ending in June FY24, net profit continued to rise, growing by 67.3 percent YoY to Rs 322.2 crore, with revenue increasing by 7.1 percent to Rs 878 crore.
Listing Date and IPO Timeline
The basis of allotment of IPO will be finalized by the company in consultation with the BSE by October 3. Shares will be credited to the demat accounts of eligible investors by October 5. Refunds for anchor investors and unblocking of funds from ASBA accounts, if any, will take place by October 4.
The trading of JSW Infrastructure’s equity shares on the BSE and NSE will commence on October 6, adhering to the IPO schedule.
Book Running Lead Managers and Registrar
The book-running lead managers for this IPO include 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 will serve as the registrar to the offer.
Stay tuned for more updates on the JSW Infrastructure IPO, and mark your calendars for the opening on September 25, 2023, as it presents a significant investment opportunity in India’s growing infrastructure sector.
Source – moneycontrol.com
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