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JSW Infrastructure has received capital market regulator SEBI’s approval for launching its initial public offering to raise ₹2,800 crore. The offer, which is expected to be priced at about ₹119 a share, will open for subscription by the end of this month, said banking sources.
The company has also filed its Red Herring Prospectus with the Registrar of Companies to begin the IPO process. The entire IPO will consist of a fresh issue of equity shares and there will be no dilution of the promoter’s existing equity.
An email, sent to the JSW Group, did not elicit any response.
Of the funds raised through IPO, the company intends to use ₹880 crore to address the debt of its wholly-owned subsidiaries, namely JSW Dharamtar Port and JSW Jaigarh Port.
It will invest ₹1,031 crore in JSW Jaigarh Port to expand and upgrade the LPG Terminal project, set up an electric substation, and purchase and install a dredger. The company will invest ₹152 crore in JSW Mangalore Container Terminal expansion.
The IPO will be the first public listing of the JSW Group nearly 13 years after the listing of its energy business in 2010. It will be the third company of the JSW Group to be listed through the IPO route after JSW Steel and JSW Energy.
JSW Infrastructure had filed the DRHP for its initial public offering with SEBI in May. The IPO proceeds will be utilised for partial repayment of debt and future project expansion.
As of March-end, the company has an installed cargo handling capacity of 158.43 million tonnes per annum for multi-commodity cargo including container, dry bulk, break bulk, liquid bulk, and gases.
JSW Infrastructure operates nine port concessions across the Eastern and Western coasts of India. The company also operates two ports on O&M contracts at Fujairah Terminal and Dibba Terminal in the UAE with a total capacity of 41 mtpa.
For the year ended March 31, it handled a cargo volume of about 93 million tonnes generating revenue of about Rs 3,195 crore and net profit of about Rs 750 crore. Its EBITDA margin stood at about 53 per cent and has a net debt of Rs 2,215 crore.
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