JSW Infrastructure Limited IPO 2023

JSW Infrastructure Ltd., established in 2006, specializes in maritime services such as cargo handling, storage solutions, and logistics support. Additionally, the company develops and operates ports under port concessions, making it India's second-largest commercial port operator based on cargo capacity. They manage various cargo types, including dry bulk, break bulk, liquid bulk, gases, and containers. Notable cargo materials include coal, iron ore, sugar, urea, steel products, rock phosphate, molasses, gypsum, barites, edible oil, LNG, and LPG. 

JSW Infrastructure Limited: Journey

The company was originally incorporated as JSW Infrastructure & Logistics Limited on April 21, 2006, under the Companies Act, 1956. It received a certificate to commence business on June 22, 2006. Subsequently, on March 18, 2008, the company's name was changed to "JSW Infrastructure Limited" to better align with its business activities. This name change was formalized through a special resolution in an extraordinary general meeting on March 25, 2008, and resulted in the issuance of a fresh certificate of incorporation with the new name on April 2, 2008.

 Port Traffic and Export Industry in India

India's global export share has risen from 2.1% in 2016 to 2.5% in 2022, with a strong track record in IT services and recent growth in goods exports. The government aims to transform India into an export hub by fostering a business-friendly regulatory environment. Key reforms, like the PLI scheme, reduced corporate taxes, simplified labor laws, and a focus on human capital, support this goal.

Port traffic in India is anticipated to experience a 3% to 6% growth rate in fiscal 2024, following an 8.2% increase in fiscal 2023. Over the period from Fiscal 2024 to Fiscal 2028, Indian ports are projected to maintain a growth rate within the range of 3% to 6%.  Additionally, there is an optimistic outlook for the key industries served by the customers, encompassing steel, power, and cement.

JSW Infrastructure Limited IPO Details

The JSW Infra IPO is set to launch on September 25, 2023, with a closing date of September 27, 2023. On October 3, 2023, investors will receive updates regarding the allotment status.

For those investors who have been allotted shares, they can anticipate the shares being credited to their demat account on October 5, 2023. The JSW Infrastructure IPO is scheduled to be listed on the NSE and BSE on October 6, 2023, which is known as the listing date. The JSW Infrastructure IPO Share price value stands at Rs. 113 to Rs. 119.

Purpose of JSW Infrastructure Limited IPO Issue

• Repaying borrowings and investing in subsidiaries

• Financing expansion projects at Jaigarh Port, including the LPG terminal, electric substation, and dredger

• Supporting the expansion of Mangalore Container Terminal.

• Meeting general corporate requirements.

JSW Infrastructure Limited IPO Issue Key Dates:

JSW Infrastructure Limited IPO Lot Size

JSW Infrastructure Ltd Investment Potential:

Qualitative Factors:

• Rapidly growing infrastructure related to ports and the second-largest commercial port operator in India.

• Strategically positioned assets in proximity to JSW Group customers (related parties) and industrial clusters, with support from a versatile transportation network.

• Stable revenues are generated from long-term concessions, committed cargo volumes, and consistent tariffs.

• Diverse operations encompass various cargo types, locations, and assets.

• Proven capabilities in project development, execution, and operations

• Backed by the solid corporate reputation of the JSW Group and a qualified, experienced management team.

• Strong financial performance with a growing profit margin, return on investment, and overall growth

Quantitative Factors:

Key Performance Indicator

 

Risk Factors:

• It incurred a Rs. 45 crore loss in the three-month period ending June 30, 2023, and its subsidiaries faced losses in FY22 and FY23.

• Operates in a capital-intensive industry with capital expenditures of Rs.344 crores, Rs.1,451 crores, and Rs.245 crores in FY21, FY22, and FY23, respectively.

• Holds substantial debt, with total borrowings amounting to Rs.4,228 crore as of June 30, 2023.

• Subject to extensive environmental and regulatory regulations.

• exposed to exchange rate fluctuations, with 15%, 16%, and 15% of total revenue from operations received in foreign currency in FY21, FY22, and FY23, respectively.

• Capacity utilization rates varied by 35%, 38%, and 56% in FY21, FY22, and FY23, respectively.

• Operates a labor-intensive business, employing 673 full-time employees and 4,525 contract laborers in India as of June 30, 2023.

In conclusion, in 2023, JSW Infrastructure will rank as India's second-largest port operator, showcasing robust performance. They've expanded to manage nine port concessions in India and two UAE port terminals, with a total cargo handling capacity of 41 MTPA as of June 30, 2023.

Financially, JSW Infrastructure has consistently excelled over the past three years, demonstrating substantial growth. From Fiscal 2021 to Fiscal 2023, their revenue has surged at a remarkable CAGR of 41.15%, EBITDA at 42.06%, and profit after tax by an impressive 62.28%. These remarkable achievements solidify their significant role in the port-related infrastructure industry.

Regarding the IPO details, JSW Infrastructure Limited's IPO is scheduled to launch on September 25, 2023, with a closing date of September 27, 2023.

 

Frequently Asked Questions

1: What does JSW Infrastructure Limited specialize in?

JSW Infrastructure Ltd. specializes in maritime services, including cargo handling, storage solutions, and logistics support. They also develop and operate ports in India.

 2: How does JSW Infrastructure Limited rank among Indian port operators?

JSW Infrastructure Limited is the second-largest commercial port operator in India based on cargo handling capacity.

3: What is the objective of the JSW Infrastructure Limited IPO?

The IPO aims to utilize the proceeds for various purposes, including prepaying or repaying outstanding borrowings, financing capital expenditure projects, and general corporate purposes.

4: What are the key dates for the JSW Infrastructure Limited IPO?

The IPO is scheduled to open on September 25, 2023, and close on September 27, 2023. The listing date is October 6, 2023.

5: What is the JSW Infrastructure Limited IPO Listing price?

The JSW Infrastructure Limited IPO price stands between Rs.113 and Rs.119 per share.

 

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Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.