JSW Infra files for IPO to raise ₹2,800 crore
2 min read 10 May 2023, 10:51 AM ISTThe company will use the capital to fund capacity expansion projects
PremiumJSW Infrastructure Ltd, the ports business of the group, has filed draft papers to raise up to ₹2,800 crore in an initial public offering (IPO), a person aware of the matter said.
The company will use the capital to retire debt and fund capacity expansion projects, the person cited above said on condition of anonymity, adding promoters will not sell their shares. As of 31 December 2022, JSW Infrastructure had a net debt of ₹2,875 crore. JM Financial is the lead banker for the issue.
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 JSW Group also operates cement, paints, venture capital and sports businesses.
A spokesperson for the JSW Group declined to comment on the matter.
JSW Infrastructure is India’s second largest commercial port operator in terms of cargo handling capacity in FY22. As on 31 December, 2022, JSW Infrastructure had 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.
JSW Infrastructure’s port business in India expanded from a single port concession acquired for Goa’s Mormugao in 2002. It commenced operations in 2004, and has nine concessions as of 31 December. The company also holds the operations and management contract of two ports in West Asia with a capacity of 41 mmt per annum. India’s port sector is poised for growth as the country aims to become a manufacturing hub, with many global manufacturers looking to India in their China-plus-1 strategy to diversify production. “The port sector may be a little stressed due to the slowdown in the global market, but that would be temporary. In the medium to long term, ports in India will continue to grow and benefit from the government’s initiatives like Make in India that aims at making India manufacture for the world," said Aniket Dani, director, Crisil Ltd, a research firm.
India has a coastline of about 7,517 km, dotted with over 200 small and large ports. Most cargo ships that sail between East Asia and America, Europe and Africa pass through Indian territorial waters, adding to the potential of the port sector.
JSW Infrastructure reported a profit after tax (PAT) of ₹447.2 crore in the December quarter of FY23 and earnings before interest, taxes, depreciation, and amortization (Ebitda) of ₹1,268.6 crore.
In the year ended December 2022, the company’s cargo volumes grew by 35%, revenue by 41%, operational profit by 31% and profit after tax by 30% over the same period a year earlier.
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. The equity shares are proposed to be listed on BSE and NSE.
