JSW Infrastructure, one of the leading commercial port operators in the country in terms of cargo handling capacity, has filed Draft Red Herring Prospectus (DHRP) with the market regulator — Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO), according to media reports.
The Ports business of Sajjan Jindal-led JSW Group seeks to raise Rs 2,800 crore via the primary route, which will entirely be the issuance of fresh equity shares. It clears that promoters will not be diluting any of their current stakes.
The company plans to use proceeds to pay off debt and fund capital expenditure projects.
A quota of 75 percent of equity shares has been reserved for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get a portion reserved of 15 percent of allocations. The remaining 10 percent of the equity shares allocations will go to retail investors.
The JSW Infrastructure will be the third company of JSW Group to enter Dalal Street and proposedly listed on NSE and BSE, after JSW Energy in January 2010 and JSW Steel in March 2005.
About JSW Infrastructure:
JSW Infrastructure bagged Port Concession at Mormugao in Goa in 2002, which commenced operations in 2004. The company thence expanded from one to nine Port Concessions as of December 31, 2022, coming out as a well-diversified maritime port company.
It has its presence in states like Maharashtra, Odisha, and Karnataka. The company has an installed cargo handling capacity of 153.43 million tonnes/ year.
As of December 31, 2022, JSW Infrastructure owes a net debt of Rs 2,875 crore. It had a profit after tax (PAT) of Rs 447.2 crore in the Oct-Dec quarter of 2022-23, and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at Rs 1,268.6 crore.
For the nine months ended December 31, 2022, it handled a cargo volume of 66.70 million metric tons (MMT). The revenue from operations was Rs 2,279.44 crore, and profit after tax stood was Rs 447.24 crore in the same period.
The book-running lead managers to the issue are 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.
KFin Technologies Limited will be the registrar of the offer.