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JSW Infrastructure, the ports business of the JSW Group, has filed the draft red herring prospectus with SEBI for an initial public offering.
The ports business of Sajjan Jindal-led JSW Group plans to raise ₹2,800 crore through the IPO route. The company plans to deploy these funds to retire its debt and fund its capacity expansion projects.
JSW Infrastructure has net debt of ₹2,875 crore as of December 31, 2022. When contacted, the company spokesperson declined to comment.
Fastest-growing
JSW Infrastructure has emerged as one of the fastest-growing port-related infrastructure companies in terms of growth in installed cargo handling capacity and cargo volumes handled during fiscal 2020 to 2022.
It was the second largest commercial port operator in India in terms of cargo handling capacity in fiscal 2022.
As of December 31, 2022, JSW Infrastructure has an installed cargo handling capacity of 153.43 million metric tonnes per annum (mmtpa) for multi-commodity cargo including dry bulk, break bulk, liquid bulk, gases, and containers.
Since JSW Group acquired the Mormugao port concession in Goa in 2002 and began operations in 2004, JSW Infrastructure’s port business operations have expanded to nine port concessions across India by December 31, 2022, making it a well-diversified maritime ports company.
Additionally, the company is into an O&M contract of two ports Fujairah and Dibba Terminal in UAE with a total capacity of 41 mmtpa capacity.
As part of its efforts to increase cargo handling capacity, expand geographically and product-wise, and cater to growing cargo volumes, JSW Infrastructure has acquired port concessions in Tamil Nadu and Karnataka.
The company plans to further expand its asset portfolio and grow its operations by evaluating acquisition opportunities to strengthen its presence in handling containers 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. JM Financial is the lead banker on this public issue.
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