JSW infrastructure files DRHP for IPO with SEBI

JSW Infrastructure, the ports business of the JSW Group has filed the DRHP for its initial public offering with SEBI on 9th May 2023, with a plan to raise upto Rs 2,800 crore through the IPO route. JSW has plans to deploy these funds to retire its debt as well as to fund its capacity expansion projects.

JSW Infrastructure has emerged as the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2020 to Fiscal 2022, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2022.

As at 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 have expanded from one Port Concession at Mormugao in Goa that 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, company is into O& M contracts of 2 ports in UAE, at Fujairah Terminal and Dibba Terminal having a collective capacity of 41 mmtpa.

In an effort to increase cargo handling capacity and expand its footprint across geographies and products and to cater to growing cargo volumes, JSW Infrastructure in the past has acquired Port Concessions in the states of Tamil Nadu and Karnataka.  The company has 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.

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 has shown very strong CAGR growth in all key parameters in terms of, Cargo volume 35%, revenue 41% from Rs 1,143.15 crore in FY 2019-20 to Rs 2,273.06 crore in FY 2021-22, EBITDA 31% from Rs 713.42 crore in FY 2019-20 to Rs 1,215.11 crore in FY 2021-22 & PAT 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, whereas EBITDA margin stood at 52.87% and has a net debt of Rs 2,875 crore.

JM Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, DAM Capital Advisors Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

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