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The Rs 2800 Crore Initial Public Offering of JSW Infrastructure, the ports business of US$ 23 billion JSW Group and India’s second largest commercial port operator in terms of cargo handling capacity was subscribed 2.13 times on the second day of bidding.

The issue received bids of 29,07,83,556 shares against the offered 13,62,83,186 equity shares, at a price band of ?113-119, according to the data available on the stock exchanges.

Non-Institutional Investors was subscribed 3.70 times, Retail Portion was subscribed 4.54 times, whereas Qualified Institutional Buyer Portion was subscribed 0.55 times. The issue kicked off for subscription on Monday, September 25th 2023 and will close on Wednesday, September 27th 2023.

A day prior to the opening of the issue, JSW Infrastructure Ltd had raised Rs 1,260 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were Morgan Stanely, HSBC Global, Theleme, Pictet, SBI MF, ICICI Pru MF, HDFC MF, Nippon MF, Birla MF, UTI MF, LIC MF, Franklin Templeton MF, Tata MF, Sundaram MF, SBI Life, Birla Life, Bajaj Allianz Life, Max Life, SBI General Insurance, Shamyak Investment (Enam group firm led by Akash Bhansali), Premji Investment, Madhu Kela led MK Ventures, Sunil Singhania led Abakkus etc.

The issue has received a "SUBSCRIBE" rating from brokerage firms like Asit. C. Mehta Investment Intermediates Ltd, Marwadi Share & Finance Ltd, Ventura Securities Ltd, Canara Bank Securities Ltd, Geojit Securities Ltd, among others. The concessions for ports and terminals managed by JSWIL provide a robust revenue outlook, boasting a residual weighted average lifespan of 25 years. The cargo composition predominantly comprises bulk and break-bulk commodities such as thermal and coking coal, as well as iron ore.

According to the brokerage houses, the current valuation of this issue stands at a price-to-earnings ratio of 28.88x, which seems to be a reasonable price considering the company's strong revenue prospects and consistent profit margins in the future.

JM Financial Limited, Axis Capital Limited, Credit Suisse 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 are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

Company Information 

JSW Infrastructure Limited is part of the JSW Group. JSW Infrastructure Limited is the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023 operating environment-friendly seaports & terminals. It operates nine state port concessions strategically located on the west and east coasts of India. The existing ports and terminals of the Company are capable of handling a wide range of cargo and vessels up to Cape size. Its largely mechanized cargo handling system enable quick turnaround times while ensuring efficient use of existing resources. The strategic locations of these facilities makes its ports a preferred option for its customers.  JSW Infrastructure Limited has expanded its cargo mix by leveraging its locational advantage and maximizing asset utilization. As part of its future growth strategy, the Company plans to enhance its overall cargo-handling capacity to 300 MTPA by 2030. It is also strengthening its market position by focusing on value-added offerings with end-to-end logistic support and a diversified cargo profile. JSW Infrastructure is committed to strengthening its ESG performance across the operational ecosystem by aligning its policies and practices with international standards. As a multinational conglomerate, JSW Group also has other business interests in sectors such as steel, energy, cement, paints, sports and venture capital. (Source: CRISIL Report) 

JSW Infrastructure’s port business operations expanded from one Port Concession at Mormugao, Goa (acquired by the JSW Group in 2002) where it commenced operations in 2004, to nine Port Concessions as of June 30, 2023 across the Western & Eastern coast of India, making it a well-diversified maritime ports company. It also operates two port terminals under Operations & Management agreements in Fujairah Terminal and Dibba Port in the UAE with cumulative cargo handling capacity of 41 mmtpa. The company plans to further expand its Ports asset portfolio and grow its operations through low cost brownfield expansions as well as develop greenfield Ports at strategic locations. It will also consider inorganic opportunities to acquire assets which can strategically strengthen its presence in handling container and liquid cargo. The new capacity building is aimed at diversifying the Company’s cargo portfolio beyond Bulk cargo such as Gas, Liquid, Container etc with a strong focus on growing its third-party customer base.  

As on March 31, 2023, JSW Infrastructure’s installed cargo handling capacity of 158.43 million tonnes per annum. The company provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to the customers. 

The table below shows the data as of 5:00 pm

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