JSW Infrastructure, a prominent entity within the JSW Group, is gearing up for its highly anticipated initial public offering (IPO) scheduled to kick off on September 25. This marks a significant milestone as it is the group’s first public issue in over a decade.
To help you make an informed decision about investing in this IPO, here are 10 essential details to keep in mind:
1. IPO Dates
- The IPO opens for subscription on September 25 and will close on September 27.
2. Price Band
- The price band for the IPO has been fixed at Rs 113-119 per share.
3. IPO Size
- JSW Infrastructure aims to raise Rs 2,800 crore through the IPO at the upper end of the price range.
- Notably, this IPO consists solely of a fresh issue of shares by the company, without an offer-for-sale component.
4. Objectives of Fresh Issue
- The net proceeds from the IPO will be utilized for various purposes, including debt repayment amounting to Rs 880 crore.
- Additionally, funds amounting to Rs 1,029.04 crore will be allocated for expansion and upgrades at Jaigarh Port, a subsidiary of JSW Jaigarh Port.
- The expansion of Mangalore Container Terminal, another subsidiary (JSW Mangalore Container Terminal), will receive Rs 151.05 crore from the fresh issue proceeds.
- The remaining funds will serve general corporate purposes.
5. Lot Size
- Investors can subscribe to a minimum of 126 equity shares (one lot) and in multiples of 126 shares thereafter.
- For retail investors, the minimum application amount is Rs 14,994 (for 126 shares), and the maximum investment is capped at Rs 1,94,922 (1,638 shares), as they cannot exceed the Rs 2 lakh investment limit.
6. About the Company
- JSW Infrastructure specializes in maritime-related services, including cargo handling, storage solutions, and logistics services.
- Its extensive network of ports and terminals boasts long concession periods, offering long-term revenue stability.
- The company has experienced rapid growth in cargo handling capacity and volumes, making it a key player in the industry.
7. Financial Performance
- JSW Infrastructure has shown remarkable growth, with revenue from operations growing at a CAGR of 41.15 percent between FY21 and FY23.
- The company’s net profit for FY23 surged by 126.8 percent year-on-year.
- In Q1 FY24, the net profit increased by 67.3 percent compared to the same quarter in the previous fiscal year.
8. Promoters
- The Sajjan Jindal Family Trust holds a majority stake of 90.91 percent in the company.
- Other significant shareholders include JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex.
9. Risks and Concerns
- Various risks, including dependence on government agreements, cargo types, and debt levels, need to be considered before investing.
10. Grey Market Pricing and Listing Date
- Grey market sources suggest that JSW Infrastructure’s shares are trading at a premium of approximately 12 percent above the upper price band.
- The IPO’s basis of allotment will be finalized by October 3, with shares credited to investors’ demat accounts by October 5.
- Trading in JSW Infrastructure’s equity shares on the BSE and NSE is expected to commence on October 6, as per the IPO schedule.
This IPO marks a significant opportunity for investors to participate in the growth story of JSW Infrastructure. However, it’s crucial to carefully evaluate the risks and potential rewards before making an investment decision.
