JSW Infrastructure plans Rs 28 Bn IPO
PORTS & SHIPPING

JSW Infrastructure plans Rs 28 Bn IPO

JSW Infrastructure, India's second-largest commercial port operator, is planning to raise Rs 2,800 crore through an initial public offering (IPO). This marks the first time in 13 years that the JSW group is opting for an IPO to raise capital. The funds raised from the IPO will be utilized for the expansion of the Jaigarh port and the Mangalore terminal, as well as for debt repayment.

The promoter holding in the company will decrease from 96.4% to 85.6% following the IPO. JSW Infrastructure has demonstrated rapid cargo volume growth among port companies, focusing on the less capital-intensive and faster cash-flow-generating terminal business. Its revenue stability is ensured as the JSW group serves as its anchor customer, and the company enjoys a long concession period of over 25 years, making it an attractive option for long-term investors.

JSW Infrastructure, headquartered in Mumbai, operates two non-major ports in Maharashtra, Jaigarh and Dharamtar, and seven terminals on both the western and eastern coasts of India. These ports are strategically located near JSW Steel and Energy plants, and the JSW group contributes two-thirds of the company's revenue. Over the past three years, the proportion of third-party sales has been steadily increasing.

The company's cargo handling capacity increased by 15% annually to 158 million tonnes per annum (MTPA) between FY21 and FY23, with cargo volume growing by 42% to 92.8 MTPA. Additionally, it operates two port terminals in the UAE under operations and maintenance agreements with a capacity of 41 MTPA. The company is also in the process of developing a 52 MTPA capacity port in Jatadhar, Odisha, to support JSW Steel's new facility in the region.

In terms of revenue composition, the company generates nearly 32% of its revenue from iron ore handling, 27% from thermal coal, 26% from coking coal, and the remainder from other cargo. Financially, JSW Infrastructure has reported impressive growth, with revenue increasing by 41% annually to Rs 3,194 crore between FY21 and FY23. Operating profit before depreciation and amortization (EBITDA) rose by 42% to Rs 1,798 crore during the same period, resulting in an EBITDA margin of 56%. Net profit also saw substantial annual growth of 62% to reach Rs 749 crore.

However, there are risks associated with the cargo handling business, particularly its dependence on bulk cargo, which can be impacted by fluctuations in commodity prices. Changes in concession and license agreements with the government could also affect the company's financial performance. Additionally, regulatory fees account for 17% of the company's total revenue, which adds to its operational risk.

JSW Infrastructure, India's second-largest commercial port operator, is planning to raise Rs 2,800 crore through an initial public offering (IPO). This marks the first time in 13 years that the JSW group is opting for an IPO to raise capital. The funds raised from the IPO will be utilized for the expansion of the Jaigarh port and the Mangalore terminal, as well as for debt repayment. The promoter holding in the company will decrease from 96.4% to 85.6% following the IPO. JSW Infrastructure has demonstrated rapid cargo volume growth among port companies, focusing on the less capital-intensive and faster cash-flow-generating terminal business. Its revenue stability is ensured as the JSW group serves as its anchor customer, and the company enjoys a long concession period of over 25 years, making it an attractive option for long-term investors. JSW Infrastructure, headquartered in Mumbai, operates two non-major ports in Maharashtra, Jaigarh and Dharamtar, and seven terminals on both the western and eastern coasts of India. These ports are strategically located near JSW Steel and Energy plants, and the JSW group contributes two-thirds of the company's revenue. Over the past three years, the proportion of third-party sales has been steadily increasing. The company's cargo handling capacity increased by 15% annually to 158 million tonnes per annum (MTPA) between FY21 and FY23, with cargo volume growing by 42% to 92.8 MTPA. Additionally, it operates two port terminals in the UAE under operations and maintenance agreements with a capacity of 41 MTPA. The company is also in the process of developing a 52 MTPA capacity port in Jatadhar, Odisha, to support JSW Steel's new facility in the region. In terms of revenue composition, the company generates nearly 32% of its revenue from iron ore handling, 27% from thermal coal, 26% from coking coal, and the remainder from other cargo. Financially, JSW Infrastructure has reported impressive growth, with revenue increasing by 41% annually to Rs 3,194 crore between FY21 and FY23. Operating profit before depreciation and amortization (EBITDA) rose by 42% to Rs 1,798 crore during the same period, resulting in an EBITDA margin of 56%. Net profit also saw substantial annual growth of 62% to reach Rs 749 crore. However, there are risks associated with the cargo handling business, particularly its dependence on bulk cargo, which can be impacted by fluctuations in commodity prices. Changes in concession and license agreements with the government could also affect the company's financial performance. Additionally, regulatory fees account for 17% of the company's total revenue, which adds to its operational risk.

Next Story
Products

TOTO India Launches Premium G & L Showers with Sleek Faucet Range

TOTO India has launched its G Shower and L Shower series, alongside an expanded range of GT, LH, and Pull-Out lavatory faucets. The collection blends advanced technology, refined aesthetics, and everyday comfort, staying true to TOTO’s philosophy of creating spaces that are both beautiful and functional. The G Shower series delivers the 3Rs of showering: Relaxing, Refreshing, and Revitalizing. Features include the Calming Shawl spray mode, Warm Spa technology, and multiple overhead and hand-shower options across eight finishes. The L Shower complements this with easy-to-use controls sui..

Next Story
Infrastructure Energy

Hero Future Energies Secures Funding for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19.08 billion in funding from the State Bank of India (lead) and Canara Bank. The funds will be used to develop and construct HFE’s 120 MW renewable energy hybrid project at Kurnool, Andhra Pradesh. The project, contracted with SJVN, integrates wind, solar, and storage technologies to deliver reliable peak power. With a 21-year repayment period, the funding ensures timely execution and the commencement of commercial operations. The financial closure demonstrates continued lender confidence in..

Next Story
Infrastructure Energy

IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation  and GPS Renewables, has raised Rs 8.36 billion (approx. US$ 95 million) in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India.   The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants—four in Haryana, three in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh—will each produce 15 tonnes of CBG per day using paddy straw as feedstock. All nin..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?