Today is the last day to subscribe to the JSW Infrastructure issue. The ₹2,800-crore initial public offering was subscribed 2.14 times at the end of Day 2. The company has fixed the price band at ₹113 to ₹119, and the market lot is 126 shares.
The issue is entirely a fresh issue of equity shares.
As against 13.63 crore shares on offer, the IPO received bids for 29.11 crore shares. While the retail investors’ portion was subscribed 4.55 times, the quota for non-institutional investors and qualified institutional buys were bid for 3.70 times and 0.55 times, respectively.
JSW Infrastructure Ltd, a part of the JSW Group, raised ₹1,260 crore from 65 anchor investors on September 22, ahead of the 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 the 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.
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.
Of the issue proceeds, ₹880 crore will be used to prepay outstanding borrowings, ₹865.75 crore to finance capital expenditure (LPT Terminal project) requirements, ₹59.4 crore for an electric sub-station, while ₹103.88 crore will be used to purchase and instal a dredger, 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 . Back in 2010, the conglomerate had listed its energy business separately.
As an anchor customer, JSW Infrastructure had initial cargo from the JSW Group. 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 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 have 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 a cumulative cargo handling capacity of 41 MTPA as of June 30, 2023.
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 Ltd, Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd, DAM Capital Advisors Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd are the book-running lead managers, and KFin Technologies Ltd is the registrar to the issue. The equity shares are proposed to be listed on BSE and NSE.