JSW Infrastructure, the ports firm led by Sajjan Jindal, is scheduled to launch its initial public offering (IPO) on Monday, September 25. This follows the company's successful procurement of Rs 1,260 crore ($170 million) from 65 anchor investors on Friday. Among these investors are both international and domestic entities including the Government of Singapore, Monetary Authority of Singapore, Morgan Stanley (NYSE:MS), Fullerton, HSBC Trustee, and Goldman Sachs (NYSE:GS).
The forthcoming IPO marks the first for the JSW group in over a decade. The group's last IPO was in 2010 when they listed their energy business separately. The current public issue is valued at Rs 2,800 crore and consists solely of a fresh issue with no offer-for-sale component.
JSW Infrastructure has set the price band for the offer at Rs 113-119 per share. The offer will close on Wednesday, September 27. In its filing to exchanges, the company confirmed the allocation of over 1 billion equity shares to anchor investors at Rs 119 per share.
JSW Infrastructure is recognized as one of the fastest-growing companies in port-related infrastructure due to its growth in installed cargo handling capacity and cargo volumes handled. The firm intends to use the net proceeds from the fresh issue for repaying debts that total Rs 880 crore. A further sum of Rs 1,029.04 crore will be directed towards expansion or upgradation works at Jaigarh Port, owned by its subsidiary JSW Jaigarh Port.
Additionally, the company plans to expand operations at Mangalore Container Terminal using funds from the IPO. Any remaining funds will be allocated towards general corporate purposes.
The majority stake in JSW Infrastructure is held by Sajjan Jindal Family Trust with a shareholding of 90.91%. The remaining shares are owned by JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex, accounting for 9.08% of the shares.
JSW Infrastructure has shown strong financial performance, with a year-on-year profit growth of 126.8% to Rs 749.5 crore for the fiscal year ending March 2023. The company's revenue from operations also increased by 40.5% to Rs 3,194.7 crore in the same period. For the quarter ending June 2024, the net profit rose by 67.3% year-on-year to Rs 322.2 crore and revenue increased by 7.1% to Rs 878 crore.
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