Sajjan Jindal-led JSW Group is coming up with JSW Infrastructure Ltd IPO. This company was founded in 1999 and offers maritime services, including cargo handling, storage, logistics, and other value-added services.
JSW Infrastructure Limited IPO will open for subscription from 25th September 2023 to 27th September 2023.
Here are all the important details of the JSW Infrastructure Limited IPO, including issue price, IPO allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: What to look for in an RHP before investing in an IPO?
IPO Details
The key details of JSW Infrastructure Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | Monday – 25th September 2023 |
| IPO Closing Date | Wednesday – 27th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of Shares | Rs. 2 per share |
| IPO Price Band | Rs. 113 – Rs. 119 per share |
| IPO Size | Rs. 2,800 crores |
| Offer for Sale | – |
| Fresh Issue | Rs. 2,800 crores |
- IPO Dates
The important dates for JSW Infrastructure Limited IPO are highlighted below:
| Event | Date |
| Opening date | Monday – 25th September 2023 |
| Closing Date | Wednesday – 27th September 2023 |
| Allotment date | Tuesday – 3rd October 2023 |
| Refund Date | Wednesday – 4th October 2023 |
| Share Credit Date | Thursday – 5th October 2023 |
| Listing Date | Friday – 6th October 2023 |
- IPO Lot Sizes
Investors can subscribe to JSW Infrastructure Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,994 Maximum – Rs. 1,94,922 |
| Shares | Minimum – 126 Maximum – 1,638 |
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 10% |
| QIB (Qualified Institutional Buyer) | 75% |
| NII (Non-Institutional Bidders) | 15% |
JSW Infrastructure Limited IPO Objectives
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below:
- Prepayment or repayment of all or some portion of the company’s outstanding borrowings. This will primarily be done through investment in its wholly owned Subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited.
- IPO proceeds will also be used for financing capital expenditure requirements via investment in its wholly owned subsidiary, JSW Jaigarh Port Limited and JSW Mangalore Container Terminal Private Limited
- Company will also use some of the proceeds for general corporate purposes.
Top things to know about JSW Infrastructure Limited IPO
JSW Infrastructure Ltd. (JSWIL), founded in 2006, is India’s second largest commercial port operator by cargo handling capacity. It provides maritime services including cargo handling, storage, and logistics. JSWIL is a part of the JSW Group, which is a well-established conglomerate with a diversified business portfolio. The Sajjan Jindal and family trust holds the majority stake of 96.5% and is not selling any shares.
Key facts about JSW Infrastructure Limited:
- 2nd largest commercial port operator in India
- 9 Port Concessions with 158.43 MTPA capacity
- Presence in India and the UAE
- Key cargo segments: dry bulk, break bulk, liquid bulk, gases, and containers
- Long concession periods (30-50 years) providing long-term revenue visibility
- Partners with JSW Group Customers to pursue growth initiatives
This will be the third public listing from the JSW Group, after JSW Energy Ltd went public in January 2010.
Is JSW Infrastructure Limited profitable – Know the financial performance of JSW Infrastructure Limited
JSW Infrastructure Ltd financials are given in the table below:
| Year | Assets (Rs. in cr) | Revenue (Rs. in cr) | Profit After Tax (Rs. in cr) | EPS | Total Borrowing (Rs. in cr) |
| Mar-2023 | 9,450 | 3,372 | 749 | 4.12 | 4,243 |
| Mar-2022 | 9,429 | 2,378 | 330 | 1.82 | 4,408 |
| Mar-2021 | 8,254 | 1,678 | 284 | 1.62 | 3,945 |
(Source: RHP)
What are the strengths of JSW Infrastructure Limited?
Some of the key strengths of JSW Infrastructure Limited IPO that investors can take note of are:
| Category | Details |
| Growth | JSW Infrastructure is one of the most rapidly growing port infrastructure companies as far as cargo capacity and cargo volumes are concerned. Between 2012 to 2023, the company has achieved substantial growth and it is also the 2nd largest commercial port operator in the country. |
| Strategic locations | The company has strategically located Port Concessions on the country’s east and west coasts. This allows good connectivity to industrial and mineral-rich areas, ensuring cost savings for importers and exporters because of the proximity to major shipping routes. |
| Port concessions | Port concessions are generally offered for 30 to 50 years. This will ensure stable income for the company in the coming years. |
| Leadership | JSW Infrastructure Ltd enjoys leadership in maritime infrastructure in India. It is capable of handling a variety of cargo. |
What is the risk of investing in JSW Infrastructure Limited IPO?
Here are some of the risks that investors of JSW Infrastructure Limited IPO should know:
| Category | Details |
| Dependency on concessions | The company is highly dependent on concessions and licence agreements offered by governmental and quasi-governmental entities. This is required for its operations and expansion. In case of any violation of these terms, the company’s business and finances could be severely impacted. |
| Ongoing challenges | Company’s subsidiary South West Port Limited was granted environment clearance for capacity expansion. However, it now faces challenges in the National Green Tribunal and there is also other ongoing litigation. In case of any negative outcome, the business and operational results could be impacted. |
Who is Sajjan Jindal, promoter of JSW Infrastructure Limited?
Sajjan Jindal, aged 63 years, is the Chairman and Non-Executive Director and the Individual Promoter of the Company. He holds a bachelor’s degree in mechanical engineering from Bangalore University. He has been associated with JSW Steel Limited as its managing director since 1997 and is currently the chairperson and managing director of JSW Steel Limited. He is the vice chairman of the World Steel Association and is also on the board of directors of JSW Energy Limited.
He was previously associated as a director with JSW Bengal Steel Limited, National Skill Development Corporation and The Associated Chambers of Commerce and Industry of India. He has over 36 years of experience in the manufacturing and steel industry. He is a recipient of the EY Entrepreneur of the Year 2022 award, Business Standard CEO of the Year award in 2018 and the IIM JRD Tata award for Excellence in Corporate leadership in Metallurgical Industries, 2017.
Watch our detailed You Tube video on JSW Infrastructure IPO
What is the Grey Market Premium (GMP) of JSW Infrastructure Limited IPO?
As of September 21st, 2023, the grey market premium for the shares of JSW Infrastructure Limited IPO is Rs. 15 as per market observers. This indicates that the shares are expected to list at a premium over the listing cap price of Rs. 119.
Is JSW Infrastructure Limited IPO safe for investment?
JSW Infrastructure Limited enjoys marker leadership in port-related infrastructure sector. Considering that its ports are strategically located in India, it may continue to enjoy market leadership in the coming years. Its consistent financial performance is also a positive signal about the company’s future prospects. However, since this business is heavily dependent on licenses and port concessions, investors must carefully consider the company’s long-term standing before investing in this IPO.
How to apply for JSW Infrastructure Limited IPO?
Investors can invest in this IPO through the Fisdom app.
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