JSW Sets Price Band for IPO, Aims to Raise ₹2,800 Crore

JSW Sets Price Band for IPO, Aims to Raise ₹2,800 Crore

VoM News Desk | September 18, 2023 | 08:29 AM IST | Breaking News | Follow on Google News

JSW Sets Price Band for IPO, Aims to Raise ₹2,800 Crore.

IPO Details

JSW Infrastructure Limited, a part of the Sajjan Jindal-led JSW Group, has announced the price band for its upcoming initial public offering (IPO). The IPO is scheduled to open for bidding from September 25 to September 27. The company has set a price band of ₹113 to ₹119 per share for the offering.

Objective of the IPO

JSW Infrastructure aims to raise ₹2,800 crore through this IPO. The funds raised will be primarily used for business expansion and to support its ambitious growth plans. It’s important to note that the IPO will consist of a fresh issue of shares, meaning there will be no dilution of the promoter’s existing equity. The majority stake in the company is held by Sajjan Jindal and the family trust, who are the promoters of the company.

Position in the Port Industry

JSW Infrastructure holds a prominent position in India’s port industry. As of FY23, it is ranked as the second-largest port operator in the country in terms of cargo handling capacity. The company’s installed cargo handling capacity stands at an impressive 158.43 million tonnes per annum, covering various types of cargo, including dry bulk, break bulk, liquid bulk, gases, and containers. Since FY20, it has witnessed a remarkable 40% growth in cargo volumes, with a total cargo volume of 93 million tonnes as of March 31, 2023.

JSW Group’s Third Public Listing

This IPO marks the third public listing from the JSW Group, following JSW Energy Ltd, which went public in January 2010. The JSW Group, led by Sajjan Jindal, has diverse business interests, including cement, paints, venture capital, and sports.

Book Running Lead Managers

The IPO will be managed by several renowned financial institutions. 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.

Financial Highlights

As of FY23, JSW Infrastructure reported a profit after tax (PAT) of ₹750 crore, with a total revenue of ₹3,195 crore. The company also demonstrated a strong earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 53%, reflecting its robust financial performance.

JSW Infrastructure’s IPO is expected to garner significant attention from investors and industry observers, as it aims to tap into the buoyant capital market to fuel its expansion and further consolidate its position in India’s port and logistics sector.

VoM News Desk

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