JSW Group's Port Operator To Launch IPO On September 25 To Raise Rs 2,800 Crore

Conglomerate JSW Group-backed port-related infrastructure company, JSW Infrastructure will be launching its initial public offering (IPO) on September 25 to raise to Rs 2,800 crore. The IPO is the entirely fresh issue of equity shares which are proposed to be listed on exchanges BSE and NSE.

The IPO is purely a fresh issue worth Rs 2,800 crore and will open on September 25. Subscriptions will close on September 27, 2023. However, ahead of the IPO, anchor investors will be allowed to bid on September 22.

The price bands of the IPO are yet to be announced, however, the equity shares have a face value of Rs 2 each.

75% of the total size of the IPO will be allocated to qualified institutional buyers (QIBs), while 15% to be kept for non-institutional investors (NIIs), and the rest of 10% will be reserved for retail individual investors.

Book running lead managers of the IPO are --- 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. Further, KFin Technologies is the registrar of the IPO.

Proceeds of the fresh issue will be used as --- Rs 880 crore for repayment of certain outstanding borrowings through
investment in wholly-owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port; and also for financing capital expenditure requirements through investment in its wholly-owned subsidiary, JSW Jaigarh Port Limited, for proposed expansion/upgradation works at Jaigarh Port.

Further, the company plans to use Rs 865.75 crore of proceeds for the expansion of LPG Terminal Projects. A portion of proceeds up to Rs 59.4 crore will be used for setting up an electric sub-station, and Rs 103.88 crore for the purchase and installation of a dredger. The company also plans to use up to Rs 151.05 crore of proceeds for financing capital expenditure requirements through investment in its wholly owned subsidiary, JSW Mangalore Container Terminal Private Limited, for the proposed expansion at Mangalore Container Terminal. Lastly, proceeds will be used for general corporate purposes as well.

JSW Infrastructure is among the e fastest growing port-related infrastructure companies in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2021 to Fiscal 2023, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023.

The company's operations have expanded from one Port Concession at Mormugao, Goa that was acquired by the JSW Group in 2002 and
commenced operations in 2004, to nine Port Concessions as of June 30, 2023 across India, making it a diversified maritime port company.

Also, the company's installed cargo handling capacity in India grew at a CAGR of 15.27% from 119.23 MTPA as of March 31, 2021, to 158.43 MTPA as of March 31, 2023. During the same period, its cargo volumes handled in India grew at a CAGR of 42.76% from 45.55 MMT to 92.83 MMT.