• Price Band of ₹113 – ₹119 per equity share bearing face value of ₹2 each (“Equity Shares”)
• Bid/Issue Opening Date – Monday, September 25, 2023, and Bid/Issue Closing Date – Wednesday, September 27, 2023.
• The Anchor Investor Bidding Date - Friday, September 22, 2023;
• Minimum Bid Lot is 126 Equity Shares and in multiples of 126 Equity Shares thereafter.
• The Floor Price is 56.50 times the face value of the Equity Shares and the Cap Price is 59.50 times the face value of the Equity Shares.
JSW Infrastructure Limited (the “Company”), a part of the JSW Group and India’s second largest commercial port operator in terms of cargo handling capacity in Fiscal 2023 (Source: CRISIL Report), has fixed the price band at ₹113 to ₹119 per Equity Share for its initial public offering of Equity Shares.
The initial public offering (“IPO” or “Issue”) of the Company will open on Monday, September 25, 2023, for subscription and close on Wednesday, September 27, 2023. Investors can bid for a minimum of 126 Equity Shares and in multiples of 126 Equity Shares thereafter. The Issue is entirely a fresh issue of Equity Shares worth ₹ 2,800 crore.
The objects of the issue is to prepay or repay Rs 880 cr of it’s outstanding borrowings; finance capital expenditure requirements amounting to Rs 865.75 cr for an LPG Terminal Project, Rs 59.4 crs for setting up an electric sub-station, Rs 103.88 cr for the purchase and installation of a dredger and finance Rs 151.04 crs for the proposed expansion at Mangalore Container Terminal besides general corporate purposes.
JSW Infrastructure Limited is a port-related infrastructure company which received initial cargo from the JSW Group as anchor customer. In addition to partnering with JSW Group Customers, to pursue its growth strategies, 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 maximizing asset utilization. As on June 30, 2023, the Company’s installed cargo handling capacity was 158.43 million tonnes per annum ("MTPA”). 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.
The Company’s Port Concessions are strategically located and well-connected to cargo origination and consumption points. This enables the Company to serve the industrial hinterlands of Maharashtra, Goa, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana and mineral rich belts of Chhattisgarh, Jharkhand and Odisha (Source: CRISIL Report), making its ports a preferred option for its customers.
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.
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.
The Company’s third party cargo business in India has witnessed a compounded annual growth rate of 65.58% from 11.30 million metric tonne (“MMT”) in FY21 to 30.98 MMT in FY23 and by 32.29% from 7.03. MMT in the three-month period ended June 30, 2022 to 9.30 MMT in the three-month period ended June 30, 2023.
The cargo handled for the Company’s third-party customers in India as a proportion of its total cargo handled by volume increased from 24.81% in FY21 to 33.37% in FY23. It emerged as the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and overall cargo volumes handled during Fiscal 2021 to Fiscal 2023 (Source: CRISIL Report).
The Company’s business is aligned to the Government of India’s thrust towards privatization of Terminals across Major Ports hitherto managed by Port Trust Authority. Government policies have provided great impetus to the Ports sector through various initiatives including Gati Shakti Scheme, National Logistics Policy, Sagarmala and Bharatmala Pariyojana to improve transport infrastructure. (Source: CRISIL Report).
From operating terminals at major ports to developing greenfield ports like Jaigarh Port and Dharamtar Port, handling multi-commodity cargo including dry bulk, break bulk, liquid and gases and containers, with an aim to increase its third-party customer base, JSW Infrastructure Limited is uniquely positioned to capitalise on India’s growth opportunities with a strong balance sheet and ambitious growth targets.
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.
DISCLAIMER: JSW INFRASTRUCTURE LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed a draft red herring prospectus dated May 9, 2023 with SEBI (the “DRHP”) and a red herring prospectus dated September 13, 2023 with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLMs i.e., JM Financial Limited at www.jmfl.com, Axis Capital Limited at www.axiscapital.co.in, Credit Suisse Securities (India) Private Limited at http://www.credit-suisse.com/in/en/investment-banking-apac/investment-banking-in-india/ipo.html, DAM Capital Advisors Limited at www.damcapital.in, HSBC Securities and Capital Markets (India) Private Limited at www.business.hsbc.co.in/en-gb/in/generic/ipo-open-offer-and-buyback, ICICI Securities Limited at www.icicisecurities.com, Kotak Mahindra Capital Company Limited at https://investmentbank.kotak.com and SBI Capital Markets Limited at www.sbicaps.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.jsw.in/infrastructure. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” beginning on page 31 of the RHP. Potential investors should not rely on the DRHP for making any investment decision. The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act pursuant to Rule 144A of the U.S. Securities Act, and (b) in "offshore transactions" as defined in, and in reliance on, Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales are made.
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Issue or the specified securities stated in the Issue Document. The investors are advised to refer to pages 485 of the RHP for the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the pages 489 of the RHP for the full text of the disclaimer clause of BSE.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Issue Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 490 of the RHP for the full text of the disclaimer clause of NSE.
DISCLAIMER CLAUSE OF CRISIL MI&A: CRISIL MI&A, a division of CRISIL Limited (CRISIL) has taken due care and caution in preparing this report (Report) based on the Information obtained by CRISIL from sources which it considers reliable (Data). This Report is not a recommendation to invest / disinvest in any entity covered in the Report and no part of this Report should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary permission and/or registration to carry out its business activities in this regard. JSW Infrastructure Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Report or part thereof outside India. CRISIL MI&A operates independently of, and does not have access to information obtained by CRISIL Ratings Limited, which may, in their regular operations, obtain information of a confidential nature. The views expressed in this Report are that of CRISIL MI&A and not of CRISIL Ratings Limited. No part of this Report may be published/reproduced in any form without CRISIL’s prior written approval.”
For further details in relation to the Company, BRLMs, Company Secretary and Compliance Officer of the Company, availability of application forms and RHP, please refer to the statutory advertisement published on September 18, 2023
About JSW Infrastructure Limited: JSW Infrastructure Limited is part of the JSW Group. JSW Infrastructure Limited is the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023 operating environment-friendly seaports & terminals. It operates nine state port concessions strategically located on the west and east coasts of India. The existing ports and terminals of the Company are capable of handling a wide range of cargo and vessels up to Cape size. Its largely mechanized cargo handling system enable quick turnaround times while ensuring efficient use of existing resources. The strategic locations of these facilities makes its ports a preferred option for its customers. JSW Infrastructure Limited has expanded its cargo mix by leveraging its locational advantage and maximizing asset utilization. As part of its future growth strategy, the Company plans to enhance its overall cargo-handling capacity to 300 MTPA by 2030. It is also strengthening its market position by focusing on value-added offerings with end-to-end logistic support and a diversified cargo profile. JSW Infrastructure is committed to strengthening its ESG performance across the operational ecosystem by aligning its policies and practices with international standards. As a multinational conglomerate, JSW Group also has other business interests in sectors such as steel, energy, cement, paints, sports and venture capital. (Source: CRISIL Report)
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