JSW Infra IPO opens 25 Sep; price band set at ₹113-119 apiece

New Delhi: JSW Infrastructure Limited has set a price band of ₹113 -119 per share for its initial public offering (IPO) which will open for bidding on 25-27 September, the company said on Monday.

“Some of the key details of the IPO are - The price band ₹113-119 with a bid lot of 126 shares, the total offer size ₹2,800 crores and the entire offering is primary,” the company said. On listing, the company's market capitalisation is expected at ₹25,000 crores at the upper end of the price band. "The QIP portion will be 75% of the offer size which is ₹2,100 crores and of which 60% will be for anchor investors, HNI portion will be 15% i.e., ₹420 crore, retail portion will be 10% i.e., ₹280 crores.”

The Sajjan Jindal-led port business is looking to raise ₹2,800 crore through the IPO and will offer a fresh issue of shares. The Sajjan Jindal and family trust holds the majority stake of 96.5% and they are not looking at the sale of shares. 

The company is currently looking at an 11% dilution. According to the Securities and Exchange Board of India (Sebi), newly listed firms are given three years to meet the requirement of 25% public float. 

JSW infrastructure is India’s second largest port operator in terms of cargo handling capacity as of FY23. The installed cargo handling capacity of the company stood at 158.43 million tonnes per annum for multi-commodity cargo, including dry bulk, break bulk, liquid bulk, gases, and containers. It has had a 40% growth in cargo volumes since FY20 with a cargo volume of 93 million tonnes as of 31 March 2023.

This will be the third public listing from the JSW Group, 13 years after JSW Energy Ltd went public in January 2010. The Sajjan Jindal-led group also operates cement, paints, venture capital and sports businesses.

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. are the book running lead managers.

It reported a profit after tax (PAT) of ₹750 crore at the end of FY23 with a topline of ₹3,195 crore, while it reported earnings before interest, taxes, depreciation, and amortization (Ebitda) margin of 53%.