JSW Infrastructure files DRHP to raise up to Rs 2,800 crore via IPO

JSW Infrastructure, the ports business of Sajjan Jindal-led JSW Group, has filed its draft red herring prospectus (DRHP) papers with capital markets regulator SEBI to raise up to Rs 2,800 crore funds through an initial public offering (IPO).

According to the draft papers, the company plans to deploy these funds to retire its debt as well as to fund its capacity expansion projects.

The JSW Infrastructure IPO is the third public listing by the JSW Group and follows 13 years after the public listing of JSW Energy in January 2010. JSW Infrastructure Promoters will not be diluting their current stake.

JSW Infrastructure is the second-largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2022.

As of December 31, 2022, JSW Infrastructure has an installed cargo handling capacity of 153.43 million tonnes per annum for multi-commodity cargo, including dry bulk, break bulk, liquid bulk, gases and containers.

JSW Infrastructure’s port business operations expanded from one port concession at Mormugao in Goa which was acquired by the JSW Group in 2002 and commenced operations in 2004, to nine port concessions as of December 31, 2022, across India, making it a well-diversified maritime ports company.

Additionally, the company is into O&M contracts of two ports in UAE, at Fujairah Terminal and Dibba Terminal having a collective capacity of 41 mmtpa.

JSW Infrastructure in the past acquired port concessions in the states of Tamil Nadu and Karnataka as part of its efforts to increase cargo handling capacity, expand its footprint across geographies and products and to cater to growing cargo volumes.

As part of its strategy, the company plans to further expand its asset portfolio and grow its operations by evaluating acquisition opportunities to strengthen its presence in handling container and liquid cargo, with a focus on increasing its third-party customer base.

JSW Infrastructure has shown strong CAGR growth in all key parameters in terms of, Cargo volume which was up 35%, revenue which rose 41% from Rs 1,143.15 crore in FY 2019-20 to Rs 2,273.06 crore in FY 2021-22, EBITDA which gained 31% from Rs 713.42 crore in FY 2019-20 to Rs 1,215.11 crore in FY 2021-22 & PAT that rose 30% from Rs 196.53 crore in FY 2019-20 to Rs 330.44 crore in FY 2021-22.

For the nine months ended December 31, 2022, it handled a cargo volume of 66.70 million metric tons (MMT), revenue from operations stood at Rs 2,279.44 crore and profit after tax stood at Rs 447.24 crore, while EBITDA margin stood at 52.87% and has a net debt of Rs 2,875 crore.

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 are the book-running lead managers and KFin Technologies is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.