The JSW Infrastructure IPO, valued at Rs 2,800.00 crores, is a book-built issue comprising entirely of fresh shares totaling 23.53 crore. The bidding phase for the IPO commenced on September 25, 2023, concluding on September 27, 2023, with allotments finalized by September 28, 2023. Trading of shares commenced on both the BSE and NSE on October 3, 2023.

The price band for the JSW Infrastructure IPO was set between ₹113 to ₹119 per share, with a minimum lot size of 126 shares per application. Retail investors were required to invest a minimum of ₹14,994. For sNII investors, the minimum lot size investment was 14 lots (1,764 shares), amounting to ₹209,916, while for bNII investors, it was 67 lots (8,442 shares), totaling ₹1,004,598.

The book running lead managers for the JSW Infrastructure IPO include JM Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Dam Capital Advisors Ltd (formerly known as IDFC Securities Ltd), HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited. KFin Technologies Limited is appointed as the registrar for the issue.

OBJECTIVE OF IPO

1. Investment in our wholly owned Subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited, for prepayment or repayment, in full or part, of all or a portion of certain of their outstanding borrowings.

JSW Dharamtar Port, located in Raigad District, Maharashtra, sits along the Amba River, 23 Nautical Miles from Mumbai Harbour. It boasts 5 berths, handling up to 34 MTPA of bulk and break-bulk cargo. The port plays a pivotal role in supporting JSW Steel and JSW Cement's manufacturing operations in Dolvi, managing various raw materials and finished steel products.

JSW Jaigarh Port is a deepwater sea port strategically located on the west coast between Mumbai and Goa. Completed in just 20 months, it boasts 7 operational berths with a cargo handling capacity of 50 MTPA.

2. Investment in our wholly owned Subsidiary, JSW Jaigarh Port Limited, for financing its capital expenditure requirements for proposed expansion at Jaigarh Port

i) LPG Terminal Project

ii) Setting up an electric sub-station

iii) Purchase and installation of dredger.

3. Investment in our wholly owned Subsidiary, JSW Mangalore Container Terminal Private Limited, for financing its capital expenditure requirements to proposed expansion at Mangalore Container Terminal (“Mangalore Container Project”).

4. General corporate purposes.

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About JSW INFRA Limited

Fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2020 to Fiscal 2022, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2022. It provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to our customers, and are evolving into an end-to-end logistics solutions provider.

Operations have expanded from one Port Concession at Mormugao, Goa to nine Port Concessions as of December 31, 2022 across India, making a diversified maritime ports company.

Installed cargo handling capacity in India grew at a CAGR of 22.35% from 102.50 MTPA as of March 31, 2020 to 153.43 MTPA as of March 31, 2022, whereas cargo volumes handled in India grew at a CAGR of 34.97% from 34.01 MMT to 61.96 MMT.

A diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast.

Prominent Customers:- JSW Energy Limited as part of its tolling arrangements with JSW Steel, Amba River Coke Limited, JSW Cement Limited, JSW Steel Coated Products Limited, JSW Steel Coated Products, Western Concessions, JSW Steel, Karam Chand Thapar & Bros Coal Sales Limited, India Coke and Power Private Limited.

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. The maritime route is used to import crude petroleum, iron ore, coal, and other critical goods.

Major ports: - The Major Port Authorities Act, 2021 provides for regulation, operation and planning of major ports in India. The Major Port Authorities Act, 2021 revises the provisions of earlier act and vests the administration, control and management of such ports to the boards of major port authorities.

Non-major ports: - These ports come under the purview of the respective state governments and regulated by state departments, or the state maritime boards.

In Fiscal 2023, the growth in container traffic is expected to witness a muted growth of 2-5% after a robust increase of 12.7% in Fiscal 2022. The muted growth is due to emergence of unfavourable macroeconomic factors such as economic slowdown, inflationary pressures, and high freight costs during the fiscal. Furthermore, reduced stress levels on global supply chains due to the absence of COVID-19 induced restrictions is likely to result in the easing of acute shortage in container availability and faster turnaround times in ports. As a result, lesser number of containers would be needed for transportation.

Port traffic is driven by mineral, steel, cement, power and discrete manufacturing clusters. Key mineral clusters are located in Odisha, Jharkhand, Chhattisgarh and Karnataka. Major steel capacities are located near the key mineral clusters or end user markets.

Government has set up institutions to develop, monitor and regulate the operations of these Indian ports. In addition, there are institutions which implement the policies related to the sector.

RISK FACTORS

1. Lack of an efficient transportation network can affect the connectivity of the company to the outer world.
2. Working in a highly competitive and capital-intensive industry, any change in the cost of electricity and fuel can affect the company to a large extent.
3. Company is not able to utilize its capacity appropriately. It was able to use 50% up to December last year, and prior to that it used 30-40% only.
4. Top 5 customers of the company hold majority of the revenue.
5. Fluctuation in exchange rates can affect the profitability of the company.
6. Company do not own the trademark of JSW. Also, the company works on land with lease contracts. With high reliance on subcontractors to fulfill the contracts.
7. Company relies on concessions and Licenses from government and quasi-governmental organizations, with these licenses being provided for limited period of time.