JSW Infrastructure Limited announced today, Wednesday, that it has set the price band for its initial public offering (IPO) of equity shares at Rs 113 to Rs 119 per share. The company, which is part of the JSW Group, revealed that the IPO will open for subscription on Monday, September 25, 2023, and close on Wednesday, September 27, 2023.
The IPO consists entirely of a fresh issue of equity shares worth Rs 2,800 crore ($376 million). Investors can bid for a minimum of 126 equity shares and in multiples of 126 thereafter. The company plans to use the proceeds from the IPO to pay down Rs 880 crore ($118 million) of its outstanding borrowings and finance various capital expenditure requirements.
According to the company's press statement, capital expenditure includes Rs 865.75 crore ($116 million) for an LPG Terminal Project, Rs 59.4 crore ($8 million) for setting up an electric sub-station, Rs 103.88 crore ($14 million) for the purchase and installation of a dredger, and Rs 151.04 crore ($20 million) for proposed expansion at Mangalore Container Terminal.
The IPO is structured as a 100% book building issue of approximately 24.78 crore shares with a face value of Rs 2 each. The allocation plan stipulates that no less than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including a provision of 5% to mutual funds. Non-institutional bidders will have access to no more than 15% of the issue while retail investors will have access to the remaining 10%.
The lead managers for this IPO are JM Financial Limited, Axis Capital (NYSE:AXS) Limited, Credit Suisse (SIX:CSGN) 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. KFin Technologies Limited is the registrar to the issue.
The equity shares are proposed to be listed on both BSE and NSE following the close of the IPO.
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