JSW Infra IPO Opens On Sep 25

JSW Infra IPO Opens On Sep 25

Price Band Rs 113-119

JSW Infrastructure Limited plans to  expand its through brownfield and greenfield projects and considering inorganic opportunities for growth.

MUMBAI, Sep 18 (The CONNECT) - JSW Infrastructure Limited has fixed the price band at ₹113 to ₹119 per Equity Share for its initial public offering which will be open from September 25 to 27, 2023.

The company is part of the JSW Group and India’s second largest commercial port operator in terms of cargo handling capacity in Fiscal 2023, per a CRISIL Report.

The initial public offering of the Company Investors can bid for a minimum of 126 Equity Shares and in multiples of 126 Equity Shares thereafter. The Issue is entirely a fresh issue of Equity Shares worth ₹ 2,800 crore, company Joint CEO & MD Arun Maheshwari.

JSW Infrastructure which provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services has diversified its customer base to include third-party customers across geographies and expanded its cargo mix by leveraging its locational advantage and maximizing asset utilization.

As on June 30, 2023, the Company’s installed cargo handling capacity was 158.43 million tonnes per annum.

The Company’s operations expanded from one port concession at Mormugao, Goa (acquired by the JSW Group in 2002) where it commenced operations in 2004, to nine Port Concessions as of June 30, 2023. It has a diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast. The Company’s Port Concessions are strategically located and well-connected to cargo origination and consumption points. This enables the Company to serve the industrial hinterlands of Maharashtra, Goa, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana and mineral rich belts of Chhattisgarh, Jharkhand and Odisha (Source: CRISIL Report), making its ports a preferred option for its customers.

It also operates two port terminals under operations & maintenance agreements in Fujairah Terminal and Dibba Port in the UAE with cumulative cargo handling capacity of 41 MTPA as of June 30, 2023.

The Company plans to  expand its operations through brownfield and greenfield projects. It is also considering inorganic opportunities to further expand its capacities, customer base, service offerings and geographical footprint. The new capacity building is aimed at strengthening its presence in handling container and liquid cargo with a focus on growing its third-party customer base.

The Company’s third party cargo business in India has witnessed a compounded annual growth rate  of 65.58% from 11.30 million metric tonne in FY21 to 30.98 MMT in FY23 and by 32.29% from 7.03. MMT in the three-month period ended June 30, 2022 to 9.30 MMT in the three-month period ended June 30, 2023.

The cargo handled for the Company’s third-party customers in India as a proportion of its total cargo handled by volume increased from 24.81% in FY21 to 33.37% in FY23. It emerged as the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and overall cargo volumes handled during Fiscal 2021 to Fiscal 2023 (Source: CRISIL Report).

The Company’s business is aligned to the Government of India’s thrust towards privatization of Terminals across Major Ports hitherto managed by Port Trust Authority. Government policies have provided great impetus to the Ports sector through various initiatives including Gati Shakti Scheme, National Logistics Policy, Sagarmala and Bharatmala Pariyojana to improve transport infrastructure. (Source: CRISIL Report).

From operating terminals at major ports to developing greenfield ports like Jaigarh Port and Dharamtar Port, handling multi-commodity cargo including dry bulk, break bulk, liquid and gases and containers, with an aim to increase its third-party customer base, JSW Infrastructure Limited is uniquely positioned to capitalise on India’s growth opportunities with a strong balance sheet and ambitious growth targets.

JM Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, DAM Capital Advisors Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited are the book running lead managers and KFin Technologies Limited is the registrar to the Issue. The Equity Shares are proposed to be listed on BSE and NSE.         

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