JSW Infrastructure's IPO Voyage: Raising ₹2,800 Crore To Propel Port Infrastructure Growth

JSW Infrastructure, the JSW Group’s ports division, has submitted a draft red herring prospectus to SEBI for an initial public offering (IPO).

What Happened? The Sajjan Jindal-led company aims to raise ₹2,800 crore through the IPO to repay debt and fund capacity expansion projects. As of December 31, 2022, JSW Infrastructure had a net debt of ₹2,875 crore.

The company has become one of the fastest-growing port-related infrastructure businesses in India, achieving the second-largest cargo handling capacity in the fiscal year 2022. As of December 31, 2022, it had an installed cargo handling capacity of 153.43 million metric tonnes per annum (mmtpa) for various commodities.

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Since acquiring the Mormugao port concession in Goa in 2002 and commencing operations in 2004, JSW Infrastructure has expanded to nine port concessions across India, making it a diverse maritime ports company. The company also holds O&M contracts for two ports in the UAE, Fujairah and Dibba Terminal, with a combined capacity of 41 mmtpa.

To increase cargo handling capacity and expand geographically, JSW Infrastructure has acquired port concessions in Tamil Nadu and Karnataka. It plans to grow its operations further by evaluating acquisition opportunities to strengthen container and liquid cargo handling, focusing on expanding its third-party customer base.

The JSW Infrastructure IPO marks the JSW Group’s third public listing, following JSW Energy’s listing in January 2010. Promoters of JSW Infrastructure will not dilute their current stake, and JM Financial is the lead banker for the public issue.

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