JSW Infrastructure, a part of the JSW Group, is set to launch its initial public offering (IPO) on September 25, marking the group’s first public offering in 13 years. Here are 10 key points you should know before considering this investment opportunity:
IPO Dates
The IPO opens on September 25 and closes on September 27, providing a limited window for investors to participate.
Price Range
The price range for each share in the IPO is set at Rs 113-119, allowing potential investors to evaluate their entry points.
IPO Size
JSW Infrastructure aims to raise approximately Rs 2,800 crore through this IPO, exclusively through fresh issue shares, without any offer-for-sale portion. Notably, the company secured Rs 1,260 crore from anchor investors, including prominent institutions like the Monetary Authority of Singapore and Goldman Sachs, on September 22.
Use of Funds
The net proceeds from the IPO will serve various purposes, including the repayment of debts amounting to Rs 880 crore and funding expansion and upgrade projects at Jaigarh Port (Rs 1,029.04 crore) and Mangalore Container Terminal (Rs 151.05 crore). The remainder will be allocated for general corporate purposes.
Lot Size and Investor Categories
Investors can bid for a minimum of 126 equity shares, and they can increase their holdings in multiples of 126 shares. Retail investors will find the minimum application amount for 126 shares to be Rs 14,994, with a maximum investment cap of Rs 1,94,922 (1,638 shares).
The allocation is structured with 75 percent reserved for qualified institutional buyers (QIBs), 15 percent for high-net-worth individuals, and 10 percent for retail investors.
About the Company
JSW Infrastructure specializes in maritime-related services such as cargo handling, storage solutions, logistics, and other value-added services. They hold long-term port concessions, providing them with stable revenue streams. The company boasts significant growth in cargo handling capacity and is the second-largest commercial port operator in India.
Financial Performance
JSW Infrastructure has displayed robust financial performance, with impressive growth in revenue and profit. Their net profit for the year ended March FY23 increased by 126.8 percent compared to the previous year. The company’s revenue from operations also witnessed substantial growth.
Promoters and Leadership
The Sajjan Jindal Family Trust is the largest shareholder in JSW Infrastructure, holding a 90.91 percent stake. The leadership team includes Chairman Sajjan Jindal, Vice Chairman Nirmal Kumar Jain, and key executives responsible for the company’s operations and financial management.
Risks and Concerns
Investors should be aware of potential risks and concerns, such as dependence on government agreements, past losses, concentration of cargo types, credit rating impact, significant indebtedness, and reliance on JSW group customers. The capital-intensive nature of the industry also poses challenges.
Grey Market and Listing Date
The basis of allotment for IPO shares will be finalized by October 3, and shares will be credited to eligible investors’ demat accounts by October 5. Trading in JSW Infrastructure’s equity shares on the BSE and NSE is scheduled to begin on October 6.
In the grey market, analysts have reported that JSW Infrastructure’s equity shares are trading at around a 12 percent premium over the upper price band. Grey markets are unofficial platforms for trading IPO shares until they are officially listed.
The book-running lead managers for the offer are JM Financial, Axis Capital, Credit Suisse Securities (India), DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities, Kotak Mahindra Capital Company, and SBI Capital Markets, while Kfin Technologies is the offer’s registrar.
Consider these key points and conduct thorough research before making your investment decision in the JSW Infrastructure IPO.
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