JSW Infrastructure fixes price band at Rs 113-119 for Rs 2,800 cr IPO

The new capacity building is aimed at strengthening its presence in handling container and liquid cargo with a focus on growing its third-party customer base.JSW Infrastructure joint managing director and chief executive officer Arun Maheshwari said that participating in the further privatisation of port terminals, acquisitions and greenfield expansion are among the four buckets that the company is pursuing for growth.The central government has been privatizing terminals at the major ports.

JSW Group firm JSW Infrastructure on Monday fixed the price band at Rs 113-119 per share for its Rs 2,800 crore initial public offering (IPO) and will use part of the proceeds to repay debt.

The initial share sale will open for public subscription on September 25 and conclude on September 27, the company said.

The public issue is entirely a fresh issue of equity shares worth Rs 2,800 crore. Investors can bid for a minimum of 126 equity shares and in multiples of 126 equity shares thereafter.

Of the total proceeds of the issue, a sum of Rs 880 crore will be used to pay debt, and Rs 865.75 crore to finance capital expenditure requirements for an LPG terminal project, JSW Infrastructure said.

Besides this, Rs 59.4 crore will be deployed for setting up an electric sub-station, Rs 103.88 crore for the purchase and installation of a dredger and Rs 151.04 crore for the proposed expansion at Mangalore Container Terminal, it said..

A part of the freshly raised capital will also be used for general corporate purposes, the company announced..

JSW Infrastructure, a port-related infrastructure company, provides maritime-related services, including cargo handling, storage solutions, logistics services and other value-added services to its customers.

It operates seven port terminals and two ports in India besides two port terminals under operations and maintenance agreements in Fujairah Terminal and Dibba Port in the UAE with a cumulative cargo handling capacity of 41 MTPA as of June 30, 2023.

The company said it plans to further expand its operations through brownfield and greenfield projects. It is also considering inorganic opportunities to further expand its capacities, customer base, service offerings and geographical footprint. The new capacity building is aimed at strengthening its presence in handling container and liquid cargo with a focus on growing its third-party customer base.

JSW Infrastructure joint managing director and chief executive officer Arun Maheshwari said that participating in the further privatisation of port terminals, acquisitions and greenfield expansion are among the four buckets that the company is pursuing for growth.

The central government has been privatizing terminals at the major ports. The government still holds close to about 50 per cent of the capacity of Indian ports, he said.

“We have been very aggressive on the terminals and are the largest holders of such terminals in India. We would like to pursue this growth opportunity,” he added.

He said that the company has submitted bids for three terminals, which are yet to be opened.

“The third bucket could be going for acquisitions. There are few assets available in and around wherein we can grow much faster,” Maheshearo stated.

He said that the company can acquire these assets, as its balance sheet (also) permits it to do so, whichever segment (they are in). The main target would be on liquid gas, containers, among others, he added.

He said that while the company continued to bid on the terminal side, it is also developing greenfield ports and as part of this developing one such port in Odisha in two phases with a cargo handling capacity of 52 million tonnes..

The second greenfield port is on the west coast of India, he said.

As of June 30, 2023, the company's installed cargo handling capacity was 158.43 million tonnes per annum (MTPA)..

JSW Infrastructure has a diversified presence across India with non-major ports located in Maharashtra and port terminals located at major ports across Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast..

The company said its port concessions are strategically located and well-connected to cargo origination and consumption points.

JSW Infrastructure also said its third-party cargo business in India has witnessed a compounded annual growth rate of 65.58 per cent from 11.30 million metric tonnes in FY21 to 30.98 MMT in FY23 and by 32.29 per cent from 7.03 MMT in the three-month period ended June 30, 2022, to 9.30 MMT in the same period last year.

JM Financial, Axis Capital, Credit Suisse Securities (India) Private Ltd, DAM Capital Advisors, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities, Kotak Mahindra Capital Company and SBI Capital Markets are the book-running lead managers to the issue.

The equity shares of the company will be listed on BSE and NSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)