JSW Infrastructure Gains SEBI Approval for ₹2,800 Crore IPO

JSW Infrastructure IPO Approval by SEBI

JSW Infrastructure Ltd. has received approval from the Securities and Exchange Board of India (SEBI) for its ₹2,800 crore initial public offering (IPO), which is expected to take place by the end of this month. The ports business of the $23 billion JSW Group filed draft papers for its IPO in May, with the aim of retiring debt and funding its capacity expansion plans.

Debt Retirement and Expansion Goals

As of December 31, 2022, the company had a debt of ₹2,875 crore. The IPO is seen as a strategic move to address this debt and support JSW Infrastructure’s ambitious expansion initiatives. The company ranks as India’s second-largest port operator in terms of cargo handling capacity, boasting an installed capacity of 153.43 million tonnes per annum for various types of cargo, including dry bulk, break bulk, liquid bulk, gases, and containers.

JSW Group’s Public Listings

This IPO marks the third public listing from the JSW Group, coming 13 years after JSW Energy Ltd. went public in January 2010. The JSW Group, led by Sajjan Jindal, is involved in diverse sectors, including cement, paints, venture capital, and sports.

Key Financial Performance

In the December quarter of FY23, JSW Infrastructure reported a net profit of ₹447.2 crore, with earnings before interest, taxes, depreciation, and amortization (EBITDA) standing at ₹1,268.6 crore. In the year ending December 2022, the company achieved significant growth in cargo volumes (35%), revenue (41%), operational profit (31%), and profit after tax (30%) compared to the previous year.

Lead Managers and Listing Plans

The IPO will be managed by several prominent financial institutions, including JM Financial Ltd., Axis Capital Ltd., Credit Suisse Securities (India) Private Ltd., DAM Capital Advisors Ltd., HSBC Securities and Capital Markets (India) Private Ltd., ICICI Securities Ltd., Kotak Mahindra Capital Company Ltd., and SBI Capital Markets Ltd. The equity shares are proposed to be listed on the BSE and the National Stock Exchange.

JSW Infrastructure, which began operations in 2004, holds nine concessions and has an operations and management contract for two ports in West Asia with a combined capacity of 41 million metric tonnes per annum. The IPO represents a significant step in the company’s growth and development plans within the infrastructure and port management sector.