The ₹2,800-crore initial public offering opens for subscription today. The company has fixed the price band as ₹113-119 and the market lot is 126 shares.

The Issue is entirely a fresh issue of equity shares.

Anchor investors

JSW Infrastructure Limited, a part of the JSW Group, has raised raised ₹1,260 crore from 65 anchor investors on September 22, ahead of issue opening. The Sajjan Jindal company said it has finalised allocation of about 10.59 crore shares to anchor investors at ₹119 a share.

International marquee investors such as Government of Singapore, Monetary Authority of Singapore, Morgan Stanley, Fullerton, HSBC Trustee, TA Global, The Master Trust Bank of Japan, Cohesion MK Best Ideas, Goldman Sachs, Theleme India Master Fund, BNP Paribas Arbitrage - ODI, and Principal Global have participated in the diversified maritime ports company’s anchor book.

Prominent MFs as anchors

Domestic investors Abakkus, LIC Mutual Fund, SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon Life India, Aditya Birla Sun Life Trustee, SBI Life Insurance Company, Sundaram Mutual Fund, UTI Mutual Fund, Tata Mutual Fund, Max Life Insurance Company, Bajaj Allianz Life Insurance Company, and SBI General Insurance Company also participated in the anchor book.

From the process, the company will prepay ₹880 crore of it’s outstanding borrowings and for finance capital expenditure (LPT Terminal project) requirement it will use ₹865.75 crore, ₹59.4 crore will be used for setting up an electric sub-station while ₹103.88 crore for the purchase and installation of a dredger and finance and ₹151.04 crore for the proposed expansion at Mangalore Container Terminal besides general corporate purposes

This is JSW group’s first IPO after 13 years. In December 2009, the conglomerate had launched IPO of JSW Energy, its energy business separately.

About JSW Infra

JSW Infrastructure had initial cargo from the JSW Group as anchor customer. However, the company has diversified its customer base to include third-party customers across geographies and has expanded its cargo mix by leveraging its locational advantage and maximising asset utilisation. As on June 30, 2023, the Company’s installed cargo handling capacity was 158.43 million tonnes per annum. The Company provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to its customers.

The Company’s operations expanded from one port concession at Mormugao, Goa (acquired by the JSW Group in 2002) where it commenced operations in 2004, to nine Port Concessions as of June 30, 2023. It has a diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast. 

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

Utility of funds

The Company 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.

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 Issue. The Equity Shares are proposed to be listed on BSE and NSE.        

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