JSW Infrastructure files DRHP with Sebi; eyes to raise Rs 2,800 crore via IPO

JSW Group's arm JSW Infrastructure has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to launch its initial public offering (IPO). JSW Infrastructure is the ports business of the JSW Group.

The Sajjan Jindal-led JSW Group plans to raise upto Rs 2,800 crore via the primary route, which will be used towards retiring its debt as well as to fund its capacity expansion projects, which entirely consists of issuance of fresh equity shares with a face value of Rs 2 each.

JSW Infrastructure is among the fastest growing port-related infrastructure companies in terms of growth in installed cargo handling capacity and cargo volumes handled and the second largest commercial port operator in India in terms of cargo handling capacity in financial year 2021-22.

JSW Infrastructure has an installed cargo handling capacity of 153.43 million tonnes per annum for multi-commodity cargo including dry bulk, break bulk, liquid bulk, gases and containers, as of December 31, 2022.

JSW Infrastructure’s port business operations have expanded from one Port Concession at Mormugao in Goa that was acquired by the JSW Group in 2002 and commenced operations in 2004, to nine Port Concessions as of December 31, 2022 across India, making it a well-diversified maritime ports company.

Additionally, the company is into O&M contracts of 2 ports in UAE, at Fujairah Terminal and Dibba Terminal having a collective capacity of 41 mmtpa. JSW Infrastructure has in the past acquired Port Concessions in the states of Tamil Nadu and Karnataka

The JSW Infrastructure will be the third company of JSW Group which will make its debut at Dalal Street. Prior to this JSW Steel and JSW Energy were listed at the bourses, with the latter one being the last issue from the group, which floated its primary offering in January 2010.

The company has reserved 75 per cent of equity shares for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of allocations. Retail investors will get an allocation of the remaining 10 per cent of the equity shares.

For the nine months ended December 31, 2022, JSW Infra handled a cargo volume of 66.70 million metric tons (MMT), revenue from operations stood at Rs 2,279.44 crore and profit after tax stood at Rs 447.24 crore, whereas EBITDA margin stood at 52.87 per cent and has a net debt of Rs 2,875 crore.

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 are the book running lead managers, while KFin Technologies is the registrar to the issue. Equity shares of the company are proposed to be listed on BSE and NSE.

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