JSW Infrastructure, an Indian port operating company, has unveiled plans for its upcoming initial public offering (IPO). The CEO, Arun Maheswari, stated on Tuesday that the firm aims to raise Rs 2,800 crore through the IPO. The proceeds from the IPO will be utilized primarily for retiring existing debt and funding capital expenditure projects.
Among the projects slated for funding are a liquefied petroleum gas plant at Jaigarh port and a significant expansion to double a container terminal's capacity. These initiatives are part of a broader strategy to prepare JSW Infrastructure for growth opportunities such as greenfield ports and those under the government's privatisation programme. This comes amid a period of economic upswing, which Maheswari believes will result in the port sector outpacing the overall economy's growth.
Despite potential political risks, Maheswari remains confident about the prospects of the port sector. He highlighted the company's focus on balancing captive cargo from group company JSW Steel and third-party cargo, acknowledging JSW Infrastructure's heavy reliance on captive cargo.
The company's primary focus is on container, gas, and liquid segments. In response to potential volume slowdown due to the transition towards cleaner fuels, JSW Infrastructure is developing strategies. Additionally, acquisitions are also being considered if conditions prove favourable.
The move towards an IPO and subsequent debt-free status positions JSW Infrastructure for future growth opportunities and increased resilience in an evolving industry landscape.
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