JSW Infrastructure Secures SEBI Approval for ₹2,800 Crore IPO

JSW Infrastructure Secures SEBI Approval for ₹2,800 Crore IPO. Image/Reuters

JSW Infrastructure Ltd. has received approval from the Securities and Exchange Board of India (SEBI) for its ₹2,800 crore initial public offering (IPO), anticipated to take place by the end of this month. This development follows the company’s filing of draft papers for its IPO in May. The primary objectives of the IPO are to retire debt and support the company’s expansion initiatives.

Debt Reduction and Capacity Expansion

As of December 31, 2022, JSW Infrastructure had a debt burden of ₹2,875 crore. The IPO will serve as a crucial step in addressing this debt and funding the company’s ambitious plans to expand its capacity and operations.

Leading Port Operator in India

JSW Infrastructure holds the distinction of being India’s second-largest port operator in terms of cargo handling capacity. Its facilities have an installed cargo handling capacity of 153.43 million tonnes per annum, catering to various types of cargo, including dry bulk, break bulk, liquid bulk, gases, and containers.

JSW Group’s Third Public Listing

This IPO marks the third public listing from the JSW Group, with the last one occurring 13 years ago when JSW Energy Ltd. went public in January 2010. The JSW Group, led by Sajjan Jindal, is involved in various sectors, including cement, paints, venture capital, sports, and now infrastructure.

Book Running Lead Managers

The book running lead managers for the IPO include JM Financial Ltd., Axis Capital Ltd., Credit Suisse Securities (India) Private Ltd., DAM Capital Advisors Ltd., HSBC Securities and Capital Markets (India) Private Ltd., ICICI Securities Ltd., Kotak Mahindra Capital Company Ltd., and SBI Capital Markets Ltd. The equity shares are intended to be listed on both the BSE (Bombay Stock Exchange) and the National Stock Exchange.

Operational Growth and Financial Performance

JSW Infrastructure, which commenced operations in 2004, currently holds nine concessions and has operational and management contracts for two ports in West Asia, boasting a combined capacity of 41 million metric tonnes per annum. In the December quarter of FY23, the company reported a net profit of ₹447.2 crore, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to ₹1,268.6 crore.

Throughout the year ending in December 2022, JSW Infrastructure achieved substantial growth metrics, with cargo volumes increasing by 35%, revenue by 41%, operational profit by 31%, and profit after tax by 30% compared to the corresponding period in the previous year.