The company JSW Infrastructure Limited is coming up with an IPO of INR 2800 crores. The offer consists of a fresh issue of equity shares. The company intends to utilise the raised funds towards repayment of borrowings of the company and subsidiary and to fund the capital expenditure of the subsidiaries of the company.
JSW Infrastructure Limited IPO – Important Details
| JSW Infrastructure IPO Date | September 25, 2023 to September 27, 2023 |
| JSW Infrastructure IPO Listing Date | October 4, 2023 |
| JSW Infrastructure IPO Price | INR 113 to INR 119 per share |
| JSW Infrastructure IPO Lot Size | 126 Shares |
| JSW Infrastructure IPO Total Issue Size | INR 2800 crores |
| JSW Infrastructure IPO Basis of Allotment | October 2, 2023 |
| JSW Infrastructure IPO Initiation of Refunds | October 3, 2023 |
| JSW Infrastructure IPO Credit of Shares to Demat | October 3, 2023 |
| JSW Infrastructure IPO Issue Type | Book Built Issue IPO |
| JSW Infrastructure IPO Listing At | BSE, NSE |
JSW Infrastructure IPO – Company Profile
The company is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2021 to Fiscal 2023, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023.
The operations has expanded from one Port Concession at Mormugao, Goa that was acquired by the JSW Group in 2002 and commenced operations in 2004, to nine Port Concessions as of June 30, 2023 across India, making the company a diversified maritime ports company.
JSW Infrastructure provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to its customers, and are evolving into an end-to-end logistics solutions provider. The company develops and operates ports and port terminals pursuant to Port Concessions. The ports and port terminals typically have long concession periods ranging between 30 to 50 years, providing the company with long-term visibility of revenue streams.
JSW Infrastructure IPO Objective
JSW Infrastructure aims to raise funds to repay INR 880 crores in outstanding loans and finance capital expenditure in subsidiaries, including expansion projects in JSW Jaigarh Port Limited and JSW Manglore Container Terminal Private Limited.
- Repayment or pre-payment of certain secured borrowing: The company and its subsidiaries JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited has availed various loans and facilities. The outstanding balance of the loan availed by the company and the above-mentioned subsidiary as on 30th June 2023 is INR 895.74 crores. The company intends to use the raised funds to the extent of INR 880 crores to repay the borrowing.
- Financing capital expenditure through investments in wholly owned subsidiary:
- Investment in JSW Jaigarh Port Limited: The company plans to carry out expansion of LPG terminal, setting up electric sub- station and purchase and installation of dredger through its subsidiary JSW Jaigarh Port Limited and the company plans to utilise INR 1,029.03 crores for the said purpose.
- Investment in JSW Manglore Container Terminal Private Limited: The company plans to invest INR 151.05 crores for the expansion of Manglore Container Terminal.
JSW Infrastructure Limited IPO Risks And Challenges
JSW Infrastructure faces capital-intensive challenges for expansion, legal proceedings amounting to 834.96 crores, and revenue dependence on the top five customers (54.21% of revenue), posing potential financial and operational risks.
- The company operates in a capital-intensive industry and the current and future expansion plans may require significant capital that the company may be unable to raise. Furthermore, the investments in developing additional services and facilities for the port business may not be successful.
- There are outstanding legal proceedings approximately amounting to 834.96 crores involving the company, subsidiaries, directors, promoters and group companies. Failure to defend these proceedings successfully may have an adverse effect on the business prospects, financial condition, results of ongoing operations and reputation.
- The company derives a substantial portion of the revenue from our top five customers. As on 30th June 2023, 54.21% of the revenue was generated from top 5 customers. If such customers cease doing business with the company, the revenues could decline, which may have a material adverse effect on the business.
JSW Infrastructure IPO Peer Comparison
JSW Infrastructure Limited records a total income of ₹31,947.40 million with an RoNW of 18.80%. In comparison, Adani Ports and SEZ Limited reports much higher total income but a lower RoNW, highlighting JSW Infrastructure’s competitive position.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| JSW Infrastructure Limited | 31,947.40 | 2 | NA | 4.12 | 4.01 | 18.80% | 21.88 |
| Adani Ports and SEZ Limited | 2,08,519.10 | 2 | 35.95 | 24.58 | 24.58 | 11.65% | 211.02 |
JSW Infrastructure Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 16,035.70 | 22,730.59 | 31,947.40 |
| Equity (₹ in Million) | 30,884.31 | 34,718.77 | 40,888.73 |
| Expenses (₹ in Million) | 12,856.43 | 19,527.55 | 25,618.61 |
| Profit and Loss After Tax (₹ in Million) | 2,843.79 | 3,329.06 | 7,356.15 |
| RoNW (%) | 10.29% | 10.21% | 18.80% |
| Diluted EPS only (₹) | 1.62 | 1.81 | 4.01 |
| NAV per Equity Share (₹) | 15.75 | 17.87 | 21.88 |
| Total Assets (in million) | 82,545.54 | 94,294.61 | 94,506.57 |
| Total Liabilities (in million) | 51,661.24 | 59,575.85 | 53,617.84 |
JSW Infrastructure Limited IPO – Fundamental Analysis
Revenue Growth:
JSW Infrastructure Limited shows consistent revenue growth, increasing from ₹16,035.70 million in 2021 to ₹31,947.40 million in 2023.
Profitability:
The company’s profitability is on an upward trajectory, with Profit and Loss After Tax rising from ₹2,843.79 million in 2021 to ₹7,356.15 million in 2023.
Return on Net Worth (RoNW):
While RoNW remains healthy, it has shown positive growth, reaching 18.80% in 2023.
Earnings Per Share (EPS):
Diluted EPS has increased steadily, reaching ₹4.01 in 2023.
Net Asset Value (NAV) per Equity Share:
NAV per Equity Share demonstrates consistent growth, reaching ₹21.88 in 2023.
Asset and Liability Management:
Total Assets have grown from ₹82,545.54 million in 2021 to ₹94,506.57 million in 2023, indicating a robust asset base.
Summary:
JSW Infrastructure Limited exhibits strong revenue growth, improving profitability, and a healthy RoNW. However, potential investors should carefully consider the financials in conjunction with IPO pricing and market conditions before making investment decisions. Consulting with financial experts is advisable.
JSW Infrastructure Limited IPO – Industry & Market Potential
The Indian economy occupies a commercially enviable location on the global map, straddling Bay of Bengal, Indian Ocean, and Arabian Sea with a coastline of approximately 7,517 km. Ports in India handle 90% by volume and 70% by value of India’s external trade.
According to the Chief Economic Advisor, India is poised to become a 5 trillion dollar economy and ports would play a significant role in the growth story.
The Indian port sector is divided into two segments: major ports and non-major ports. As on December 2022, the Indian coastline is dotted with 12 major and nearly 217 non-major ports. Major ports are administered directly by central government, whereas non-major ports fall under the jurisdiction of state governments.
JSW Infrastructure IPO – Type of Offer
The company will issue new shares to raise capital, aiming to collect INR 2800 Crore. This fund will be utilised towards repayment of borrowings of the company and subsidiary and to fund the capital expenditure towards continued expansion.
JSW Infrastructure Ltd IPO Offer Size
The company JSW Infrastructure Limited is coming up with an IPO of INR 2800 crores. The offer consists of a fresh issue of equity shares. The issue price band per share is INR 113-119.
JSW Infrastructure IPO Allotment Structure
JSW Infrastructure IPO allocation: 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Individual Investors (RIIs) as per SEBI regulations. QIBs are banks, mutual funds, etc.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a JSW Infrastructure Limited IPO?
To apply for the JSW Infrastructure IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the JSW Infrastructure IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for JSW Infrastructure IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check JSW Infrastructure IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the JSW Infrastructure IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the JSW Infrastructure IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the JSW Infrastructure IPO:
· Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the JSW Infrastructure IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
· NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
JSW Infrastructure Limited IPO Offer Registrar
The registrar for the JSW Infrastructure IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
E-mail: [email protected]
Telephone: +91 40 6716 2222
JSW Infrastructure IPO FAQs
What is the allotment date of the JSW Infrastructure Limited IPO?
The allotment date is September 25, 2023 to September 27, 2023.
What is the price band of the JSW Infrastructure Limited IPO?
The price band is INR 113-119 per share.
What is the size of the JSW Infrastructure Limited IPO?
The offer consists of a fresh issue of equity shares worth INR 2800 crores.
What is the listing date of the JSW Infrastructure Limited IPO?
The listing date is October 4 2023.
