JSW Infrastructure LTD IPO - Review, Valuation, Date & Todays GMP

JSW Infrastructure Limited - Complete Overview

Established in 2006, JSW Infrastructure Limited specializes in maritime-related services such as cargo handling, storage solutions, logistics services, and various value-added offerings.

The company stands out as the fastest-growing port-related infrastructure firm, experiencing substantial growth in installed cargo handling capacity and cargo volumes managed from Fiscal 2021 to Fiscal 2023. Additionally, it ranks as the second-largest commercial port operator in India in terms of cargo handling capacity during Fiscal 2023.

JSW Infrastructure is an integral part of the JSW Group and holds long-term contracts with JSW Group Customers (Related Parties) to drive growth initiatives. The company not only delivers maritime-related services, including cargo handling, storage solutions, logistics, and value-added services but is also transitioning into a comprehensive logistics solutions provider.

Furthermore, JSW Infrastructure is well-equipped to handle various cargo categories, encompassing dry bulk, break bulk, liquid bulk, LPG, LNG, and containers. Its current cargo portfolio includes coal, fluxes, iron ore, sugar, urea, steel products, rock phosphate, molasses, gypsum, barites, laterites, and edible oil.

The company's ports and port terminals typically hold long concession periods, ranging between 30 to 50 years, providing it with a steady, long-term revenue outlook.

JSW Infrastructure boasts a diverse geographical presence across India, with Non-Major Ports located in Maharashtra and port terminals situated at Major Ports in the industrial regions of Goa, Karnataka (west coast), and Odisha and Tamil Nadu (east coast). It also extends its reach internationally with two terminals in Fujairah and Dibba, UAE.

As of June 30, 2023, the company operates from nine port concessions in India, boasting an installed cargo handling capacity of 158.43 MTPA. The installed cargo handling capacity in India has exhibited a remarkable CAGR of 15.27% as of March 31, 2023.

 

 

What does the company do?

JSW Infrastructure Limited offers a range of maritime services, encompassing cargo handling, storage solutions, logistics services, and additional value-added offerings.

 

IPO Overview

The JSW Infrastructure Limited IPO date is scheduled from September 25, 2023, to September 27, 2023, and it is categorized as a Book Built Issue IPO.

The company aims to raise Rs. 2,800.00 Crores through this upcoming IPO to accomplish various objectives. The JSW Infrastructure Limited IPO price is set between the range of Rs. 113 to Rs. 119 per share. 

Moreover, a single lot of the IPO comprises 126 shares, requiring a retail investor to invest a minimum Rs. 14,994. In terms of allocation, the company has allocated 75% for institutional investors, 15% for non-institutional investors, and 10% for retail investors.

 

JSW Infrastructure Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 September 2023
IPO Closing Date	27 September 2023
IPO Allotment Date	3 October 2023
Refund initiation	4 October 2023
IPO Listing Date	6 October 2023

 

JSW Infrastructure Limited IPO Details 

IPO Opening & Closing Date	25 September to 27 September 2023
Face value	Rs.2 per Share
Issue Price	Rs.113 to Rs.119 per Share
Lot Size	126 Shares
Price of 1 lot	Rs.14,994
Issue Size	235,294,118 Shares (aggregating up to Rs. 2,800.00 Cr)
Offer for sale	NA
Fresh issue	235,294,118 Shares (aggregating up to Rs. 2,800.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

JSW Infrastructure Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

JSW Infrastructure Limited IPO Reservation

Institutional Share Portion	75%
Non-institutional Share Portion	15%
Retail Share Portion	10%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	8254.55	9429.46	9450.66
Total Revenue	1678.26	2378.74	3372.85
PAT	284.62	330.44	749.51
Net Worth	2831.18	3212.13	3934.64
Reserve & Surplus	2829.84	3208.98	3645.75
Total Borrowings	3945.82	4408.69	4243.70

 

Revenue from operations from our top five and top 10 customers

(Amount in Million)

Customers	FY 23	FY 22	FY 21
JSW Steel Limited (“JSW Steel”)	12,943.89	9,988.86	6,466.25
Amba River Coke Limited	1,836.17	1,502.57	1,093.74
Karam Chand Thapar & Bros Coal Sales Limited	975.28	-	-
Balaji Malts Private Limited	283.37	148.06	52.57
Seil Energy India Limited	459.76	24.25	-
JSW Energy Limited (“JSW Energy”)	694.18	656.48	990.65
Chettinad Logistics Private Limited	366.04	26.26	0
Vedanta Limited	-	58.38	-
India Coke and Power Private Limited	662.41	445.25	147.40
Agarwal Coal Corporation Private Limited	347.73	275.74	80.61
Revenue from operations from our top 5 customers	16,498.47	11,663.73	7,612.56
Revenue from operations contributed by related parties among top 5 customer	14,780.07	11,491.42	7,559.99
Revenue from operations from our top 10 customers	18,568.83	13,125.85	8,831.22
Revenue from operations contributed by related parties among top 10 customers	15,474.25	12,147.91	8,550.64

 

Revenue Generated from India & outside India

(Amount in Million)

Locations	FY 23	FY 22	FY 21
Revenue from operations (India)
West coast (Maharashtra, Goa and Karnataka)	22,255.09	16,712.97	12,009.45
East coast (Odisha and Tamil Nadu)	9,488.89	5,858.68	3,875.6
Revenue from operations (outside India)
O&M	203.42	158.94	150.60
Total revenue from operations	31,947.40	22,730.59	16,035.70

 

Revenue received in foreign currency

(Amount in Million)

Particulars	FY 23	FY 22	FY 21
Revenue received in foreign currency	5,086.78	3,744.05	2,547.51

 

Objective of the Issue

The company aims to achieve the following objectives from the net proceeds:

• To prepay or repay either in full or in part, specific outstanding borrowings by investing in the wholly-owned Subsidiaries of the company, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited.
• To finance capital expenditure needs through investment in the wholly-owned Subsidiary of the company, JSW Jaigarh Port Limited, for planned expansion and upgrade projects at Jaigarh Port. These projects include the expansion of the LPG terminal 
• ("LPG Terminal Project"), establishing an electric substation, and acquiring and installing a dredger.
• To fund capital expenditure needs by investing in the wholly-owned Subsidiary of the company, JSW Mangalore Container Terminal Private Limited, for the proposed expansion of the Mangalore Container Terminal ("Mangalore Container Project").
• For general corporate purposes.

 

Promoters and Management of JSW Infrastructure Limited

Sajjan Jindal Family Trust and Sajjan Jindal are the Promoters of the Company.

Pre-issue Promoter Shareholding	96.42%
Post-issue Promoter Shareholding

 

Peer Comparison

Below are the listed peers of JSW Infrastructure Limited

Company Name	P/ E	Revenue from operations (in Rs. million)	EPS (Diluted) (Rs.)
JSW Infrastructure Limited	-	31,947.40	4.01
Adani Ports and SEZ Limited	35.95	2,08,519.10	24.58

 

IPO's Valuations

JSW Infrastructure Limited IPO price is set between the range of Rs. 113 to Rs. 119 per share, with an EPS of Rs. 4.12. Calculated using the higher end of the issue price for the IPO valuation the PE ratio of the company stands at approximately 28.88.

 

Dividend Policy 

According to the JSW Infrastructure Limited IPO DRHP, the company has not distributed any dividends in previous years, and any potential future dividend payments will be based on the financial performance of the company.

 

IPO's Strengths

• The company is the second-largest commercial port operator in India and is experiencing rapid growth in the port-related infrastructure sector.
• It strategically positions its assets in close proximity to JSW Group Customers (Related Parties) and industrial clusters, supported by a well-established multi-modal evacuation infrastructure.
• The company enjoys stable and predictable revenues generated through long-term concessions, committed cargo volumes, and consistent tariff structures.
• It maintains diversified operations concerning cargo types, geographical locations, and asset holdings.
• The company has a proven track record in project development, execution, and operational excellence.
• It leverages the strong corporate heritage of the JSW Group and is led by a qualified and experienced management team.
• With robust financial metrics, including expanding margins, return metrics, and growth, the company is in a strong financial position.

 

IPO Weaknesses 

• The company's operations rely on concession and license agreements granted by government and quasi-governmental entities for their operation and growth.
• A significant portion of the cargo handled by the company is reliant on a limited range of cargo types.
• Both the company and some of its subsidiaries have incurred losses in the past.
• The environmental clearance for capacity enhancement granted to the subsidiary, South West Port Limited, is facing challenges in the National Green Tribunal and is contingent upon the outcome of various ongoing legal disputes.
• There are ongoing legal proceedings involving the company, its subsidiaries, directors, promoters, and group companies.
• The company's business and operations are subject to extensive environmental and regulatory policies.
• A substantial portion of the company's revenue is derived from its top five customers.
• The company issued Equity Shares at a price potentially below the Issue Price during the preceding twelve months.
• Under concession and license agreements, the company is obligated to provide performance bank guarantees, which may be invoked if the company fails to fulfil its obligations in the future.
• The company's reliance on its Port Concessions along the west coast of India means that any adverse events affecting these concessions or the west coast could negatively impact overall profitability.
• Obtaining necessary statutory approvals, licenses, or renewals thereof in a timely manner is essential for the company.
• The ports depend on consistent supplies of electricity and fuel, and any disruptions in these supplies could have adverse effects on the business.

 

 

IPO GMP Today

The Latest GMP of JSW Infrastructure IPO is Rs. 17.

 

Conclusion

JSW Group is launching its IPO after over a decade. The company has consistently generated profits and boasts a robust financial track record. This presents a promising opportunity for investors to allocate their funds to this offering. Nevertheless, it is always prudent to conduct thorough research before making any investment decisions. 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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