JSW Infrastructure IPO: A Lucrative Opportunity in the Infrastructure Sector
Are you ready to seize a promising investment opportunity? JSW Infrastructure Limited IPO is set to make waves in the stock market with its Initial Public Offering (IPO) worth Rs 2,800.00 crores. Let’s dive into the details of this exciting IPO.
IPO Overview:
| IPO Date | September 25, 2023 to September 27, 2023 |
| Listing Date | – |
| Face Value | ₹2 per share |
| Price Band | ₹113 to ₹119 per share |
| Lot Size | 126 Shares |
| Total Issue Size | 235,294,118 shares (aggregating up to ₹2,800.00 Cr) |
| Fresh Issue | 235,294,118 shares (aggregating up to ₹2,800.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 1,864,707,450 |
| Shareholding post issue | 2,100,001,568 |
About JSW Infrastructure Limited:
Established in 2006, JSW Infrastructure Limited specializes in maritime-related services, including cargo handling, storage solutions, and logistics services. It is a part of the renowned JSW Group and is the second-largest commercial port operator in India based on cargo handling capacity for Fiscal 2022.
The company handles a wide range of cargo types, from dry bulk and break bulk to liquid bulk, gases, and containers. Some of the cargo includes thermal coal, iron ore, sugar, steel products, and more. JSW Infrastructure boasts long concession periods ranging from 30 to 50 years, ensuring a stable revenue stream.
JSW Infrastructure operates across India, with ports in Maharashtra, Goa, Karnataka, Odisha, and Tamil Nadu. It also has an international presence with terminals in the UAE.
As of June 30, 2023, the company’s installed cargo handling capacity in India has witnessed remarkable growth, with a Compound Annual Growth Rate (CAGR) of 15.27% from March 31, 2021, to March 31, 2023.
Objectives of the Issue:
The proceeds from the IPO will be allocated for the following purposes:
Prepayment or repayment of certain outstanding borrowings through investments in wholly-owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited.
Financing capital expenditure requirements for expansion and upgradation at Jaigarh Port, including the expansion of the LPG terminal, setting up an electric sub-station, and the purchase and installation of a dredger.
Financing capital expenditure requirements for the proposed expansion at Mangalore Container Terminal through investment in the wholly-owned subsidiary, JSW Mangalore Container Terminal Private Limited.
General corporate purposes.
JSW Infrastructure IPO Promoter Holding:
Mr. Sajjan Jindal and Sajjan Jindal Family Trust are the promoters of the company.
| Share Holding Pre Issue | 96.42% |
JSW Infrastructure IPO Lot Size:
| Retail (Min) | 1 | 126 | ₹14,994 |
| Retail (Max) | 13 | 1638 | ₹194,922 |
| S-HNI (Min) | 14 | 1,764 | ₹209,916 |
| S-HNI (Max) | 66 | 8,316 | ₹989,604 |
| B-HNI (Min) | 67 | 8,442 | ₹1,004,598 |
Expert Opinion:
According to expert Dilip Davda, this IPO is a significant opportunity, marking the return of the JSW group to the market after over a decade. JSW Infrastructure has shown consistent growth in both its top and bottom lines. Based on projected earnings for FY24, the issue is reasonably priced, making it an attractive option for medium to long-term investors.
In conclusion, JSW Infrastructure IPO presents a compelling chance to invest in a dynamic infrastructure company with a strong track record and promising growth prospects. Consider participating in this IPO and potentially reap the rewards of India’s infrastructure development.
