JSW Infrastructure IPO: All you need to know

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JSW Infrastructure IPO

JSW Infrastructure Limited is offering shares to the public from 25 September 2023 to 27 September 2023. Each share costs between ₹113 and ₹119 and has a face value of ₹2. You can buy a minimum of 126 shares for ₹14,994. They plan to list these shares on 6 October 2023. The total value of this offering is ₹2,800 Crores, which includes a fresh issue worth ₹2,800 Crores.

 JSW Infrastructure Limited IPO: Business Overview

Founded in 2006, JSW Infrastructure Limited helps with shipping, storage, and transport at sea. They manage ports. They're part of the bigger JSW Group and collaborate with them. By 2022, they became the country's second-largest port goods handler.

The company deals with many kinds of goods, from different types of coal and gases to items like sugar, steel, and edible oil. They also manage large storage containers. JSW Infrastructure's ports usually have agreements that last between 30 to 50 years. This gives them a steady income for a long time.

The company runs ports and terminals across India, in places like Maharashtra, Goa, Karnataka, Odisha, and Tamil Nadu. They also have two terminals in the UAE, at Fujairah and Dibba. As of June 30, 2023, JSW Infrastructure manages nine port areas in India, able to handle up to 158.43 million tons of cargo annually. Their capacity to handle goods in India has increased by 15.27% each year from 2021 to 2023.

JSW Infrastructure Limited IPO: Details

IPO Date25 September 2023 to 27 September 2023
Allotment DateOctober 3rd, 2023
Listing DateOctober 6th, 2023
Issue SizeRs 2,800 Crores
Price BandRs 113-119 per share
Lot Size:126 Shares

(Source: DRHP)

JSW Infrastructure Limited IPO: Reservations

QIB Shares OfferedNot more than 75% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 10% of the Offer

(Source: DRHP)

Jm Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd), HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited have been appointed as the book-running lead managers for the JSW Infrastructure Limited IPO, while Kfin Technologies Limited will serve as the registrar to the issue. The shares are expected to be listed on both BSE and NSE, with a tentative listing date of October 6, which falls on a Friday.

The Objective of the Issue:

The net proceeds from the issue will be utilised towards:

·       Investment in our wholly owned Subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited, for prepayment or repayment, in full or part, of all or a portion of certain of their outstanding borrowings.

·       Investment in our wholly owned subsidiary, JSW Jaigarh Port Limited, for financing its capital expenditure requirements for proposed expansion/up-gradation works at Jaigarh Port.

·       Investment in our wholly owned subsidiary, JSW Mangalore Container Terminal Private Limited, for financing its capital expenditure requirements in relation to the proposed expansion at Mangalore Container Terminal.

·       General corporate purposes.

JSW Infrastructure Limited IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue3372.852378.731678.26
Profit/Loss After Tax749.51330.43284.62
Current Assets2790.212336.251402.56
Current Liabilities714.09906.57973.19

(source: RHP)

The Current Assets have increased from ₹ 2336.25 Crores in March 2022 to ₹ 2790.21 Crores in March 2023, with an increase of 19.43% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from ₹ 2378.73 Crores in FY22 to ₹ 3372.85 Crores in FY23, with a conspicuous increase of 41.79%. Moreover, Net profits have also seen an increase, going up from ₹ 330.43 Crores in FY22 to ₹ 749.51 Crores in FY23, which has increased by 126.82% over the past year.

Key Performance IndicatorValues
EPS (Rs)-5.44
Net Asset Value (NAV)₹21.88 per Equity Share
Return on Net Worth (RoNW)18.80%

(source: DRHP)

  • JSW Infrastructure Limited IPO: Strengths
  •  India's quickest-growing port business and second-biggest port operator.
  •  Has diversified operations in terms of cargo profile, geography, and assets.
  •  company's ports are conveniently located near their clients. Due to good connections, they often get repeat business from customers.
  •  Steady income due to long contracts, regular cargo, and consistent prices.
  • Gains from the reputation of the JSW Group and a skilled management team.

 JSW Infrastructure Limited IPO: Risk

  •  Depends on government permits and deals to run and expand the business.
  •  If the top five clients leave, the company's income could drop.
  •  A big part of their business is handling coal and iron ore. If this decreases, profits might suffer.

JSW Infrastructure Limited Peer Comparison

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
JSW Infrastructure Limited3372.85749.514.12NANA
Adani Ports and SEZ Limited6179.121140.9724.5835.951,79,507.55