JSW Infrastructure has recently announced that it will launch its IPO of entirely fresh issues on September 25 2023. It will stay open for subscription till September 27 2023. The company is a maritime services provider with substantial port-related infrastructure. The JSW Infrastructure IPO will be listed on NSE and BSE. The tentative listing date is fixed on October 6, 2023, as of now. The minimum lot size for one application is set at 126 shares. The price band is set at Rs. 113 to Rs. 119 each share.
Get a detailed insight into the important details and financial statements of JSW Infrastructure prior to investing in their IPO.
Table of Content
JSW Infrastructure IPO Details
The following table lays down the IPO details of JSW Infrastructure. Take a look:
| IPO Date | September 25 – September 27, 2023 |
| Listing At | NSE, BSE |
| Face Value | Rs. 2 each share |
| Issue Type | Book Built Issue |
| Shareholding Pre-Issue | 18,64,707,450 |
| Price Band | Rs. 113 to Rs. 119 each share |
| Total Issue Size | Rs. 2800 crore |
| Fresh Issue | Aggregating up to Rs. 2,800 crore |
| Lot Size | 126 shares (for retail investors) |
About the Company
JSW Infrastructure is a subsidiary of the JSW Group. This group is a multinational conglomerate comprising a highly diversified portfolio consisting of various sectors such as steel, infrastructure, energy, venture capital, sports, paints, and cement.
Being the 2nd largest commercial port operator in India, JSW Infrastructure has a high capacity for cargo handling. They started with the port Concession at Mormugao (Goa) in 2002. Now, they have 9 Port Concessions all over India as well as 2 global terminals at Dibba and Fujairah, UAE.
The company deals with maritime-related services inclusive of storage solutions, cargo handling, logistics services and many others. Their ports and port terminals have a port concession period ranging between 30 and 50 years which brings them a long-term revenue stream.
JSW’s installed cargo handling capacity has grown at an impressive CAGR of 15.27% from March 31, 2021 to March 31, 2023 in India.
Read Also: All Upcoming IPOs
JSW Infrastructure IPO Tentative Timetable
Find details regarding the timing and tentative dates of the JSW Infrastructure IPO in the following table:
| Anchor Book Opening Date | Friday, September 22, 2023 |
| IPO Open Date | Monday, September 25, 2023 |
| IPO Close Date | Wednesday, September 27, 2023 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on September 27, 2023 |
| Basis of Allotment | Tuesday, October 3, 2023 |
| Initiation of Refunds | Wednesday, October 4, 2023 |
| Credit of Shares to Demat | Thursday, October 5, 2023 |
| Listing Date | Friday, October 6, 2023 |
JSW Infrastructure IPO Lot Size
JSW Infrastructure has set the lot size at 126 shares. Hence, each investor can bid for a minimum of 126 shares and in multiples henceforth. Find the maximum and minimum investment details in the following table:
| Application | Lot | Shares | Amount (in Rupees) |
| Retail (Min) | 1 | 126 | 14,994 |
| S-HNI (Min) | 14 | 1,764 | 2,09,916 |
| B-HNI (Min) | 67 | 8,442 | 10,04,598 |
| Retail (Max) | 13 | 1638 | 1,94,922 |
| S-HNI (Max) | 66 | 8,316 | 9,89,604 |
Company Financials
Take a look at the company financials to have an idea about the company’s condition and make an informed decision:
| Parameters as Per the Year Ending On | 31 March 2023 | 31 March 2022 | 31 March 2021 |
| Total Assets | 94,506.57 | 94,294.61 | 82,545.54 |
| Total Liabilities | 53,617.84 | 59,575.85 | 51,661.24 |
| Total Expenses | 25,618.61 | 19,527.55 | 12,856.43 |
| Total Revenue | 33,728.53 | 23,787.38 | 16,782.63 |
| Profit After Tax | 7,495.13 | 3,304.37 | 2,846.24 |
| EBITDA | 17,983.03 | 12,151.10 | 8,911.32 |
| Earnings Per Share (Basic) | 4.12 | 1.82 | 1.62 |
| Earnings Per Share (Diluted) | 4.01 | 1.81 | 1.62 |
*All figures in Rs. millions except EPS
Strength
Here are some of the strengths of India’s 2nd largest commercial port operator in India:
- JSW Infrastructure is the most rapidly growing port infrastructure company in terms of cargo capacity growth and cargo volumes from Fiscal 2012 to Fiscal 2023. It is also the 2nd largest commercial port operator in the country.
- Its strategically located Port Concessions on India’s west and east coasts offer excellent connectivity to industrial and mineral-rich regions, enabling importers and exporters to save costs due to their proximity to major shipping routes.
- Port concessions typically last 30 to 50 years. Jaigarh Port in Maharashtra was awarded a 50-year concession in 2008, while Dharamtar Port (Maharashtra) and other major port terminals have 30-year concessions. This ensures stable income at the company’s ports.
- JWS Infrastructure Ltd has become the leading maritime infrastructure firm operating multi-cargo ports and terminals in India. It can handle a variety of cargo from dry bulk to liquid bulk, LPG, LNG and containers, including coal, iron ore, sugar, products from steel and others.
Risks Involved
Along with the strengths, investors should also be aware of the company’s risks to make a responsible decision:
- The company depends on concessions and licence agreements with governmental and quasi-governmental entities for its operations and expansion. Violation of these terms may result in termination, potentially harming the Company’s business, financial condition and cash flows.
- Its subsidiary South West Port Limited was granted environment clearance regarding the expansion of its capacity. However, the subsidiary is now facing challenges in the National Green Tribunal and other ongoing litigation. Negative results in these cases could affect their business, operational results, financial condition, and cash flow.
Summary
JSW Infrastructure aims to utilize the funds raised from its IPO for various purposes. One of them is the prepayment and repayment of some outstanding borrowings through investment in their wholly owned subsidiaries JSW Jaigarh Port Limited and JSW Dharamtar Port Private Limited. It will also be used for financing capital expenditure, upgradation and expansion of ports, setting up electric substations, installation of dredgers, and other corporate commitments.
Frequently Asked Questions
Yes, JSW Infrastructure Limited has been profitable over the previous three financial years with steadily growing revenue over the years. It recorded Rs. 749.51 crore net profits in FY23 and Rs. 330.44 crore in FY22.
The company has reserved 10% of its total issue size (around Rs. 280 crore) for retail investors.
Other than JSW Infrastructure which has an upcoming IPO, JSW Energy and JSW Steel are the only currently listed companies of this conglomerate.
SBI Capital Markets, ICICI Securities, Axis Capital, JM Financials, DAM Capital Advisors, HSBC Securities & Capital Market, Credit Suisse Securities (India) and Kotak Mahindra Capital Company are the lead managers for this IPO.
