JSW Infrastructure Ltd., India's second-largest port operator, has received the green light from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) expected to be launched by the end of September. The IPO, which is the company's first in 13 years, is projected to raise around Rs 28-28.5 billion ($376-381 million).
The IPO will consist entirely of a fresh issuance of equity shares. The funds raised are intended to address the debt of its wholly-owned subsidiaries, JSW Dharamtar Port and Jaigarh Port, and finance capital expenditures of two other subsidiaries, JSW Jaigarh Port and JSW Mangalore Container Terminal, among other strategic initiatives.
The company's debt as of December 31, 2022, stood at Rs 2,875 crore ($385 million). This move comes after JSW Infra filed draft papers for its IPO in May, with an aim to retire debt and fund its capacity expansion plans.
JSW Infra initially acquired a port concession at Mormugao, Goa in 2002 and began operations in 2004. Since then, it has expanded to hold nine port concessions across India as of December 31, 2022. The company also holds operations and management contracts for two ports in West Asia with a capacity of 41 million metric tonnes (mmt) per annum.
As of today, the firm's installed cargo handling capacity stands at 153.43 million tonnes per annum for multi-commodity cargo, including dry bulk, break bulk, liquid bulk, gases and containers. This makes JSW Infra the second-largest port operator in India in terms of cargo handling capacity.
In the financial year ending December 2022, the company's cargo volumes grew by 35%, revenue by 41%, operational profit by 31% and profit after tax by 30% over the same period a year earlier. In the December quarter of FY23, JSW Infra reported a net profit of Rs 447.2 crore ($60 million) and earnings before interest, taxes, depreciation, and amortization (Ebitda) of Rs 1,268.6 crore ($170 million).
The planned IPO will be the third public listing from the JSW Group, following JSW Energy Ltd's public debut in January 2010. The Sajjan Jindal-led conglomerate also operates in cement, paints, venture capital and sports businesses.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.