JSW Infrastructure Makes Strong Debut, Closes at 32.18% Premium

On Tuesday, JSW Infrastructure Ltd, part of the JSW Group and a commercial port operator, made a strong debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company’s shares began trading at ₹143, reflecting a 20.17% premium. By the end of the trading session, the share price climbed to ₹157.30, representing a 32.18% premium.

The public subscription for JSW Infrastructure commenced on September 25, 2023, marking the group’s first initial public offering (IPO) in 13 years, following the listing of JSW Energy in 2010. The upper price limit for the public offering was set at ₹119.

The IPO attracted significant investor interest, achieving a subscription rate of 37.37 times.

In the financial year 2022-23, JSW Infrastructure reported total revenues of ₹3,372 crore (approximately $448 million), an increase from ₹2,378 crore ($316 million) the previous year. Net profit for the same period was ₹749 crore ($99 million), up from ₹330 crore ($44 million) in FY22.

JSW Infrastructure offers various maritime services, including cargo handling, storage solutions, logistics services, and other value-added services. As of March 31, 2023, the company had an installed cargo handling capacity of 158.43 million tonnes per annum.

The company has seen considerable growth as an independent port operator, catering to a diverse clientele that handles bulk cargo, LPG, containers, sugar, and more. It operates nine Port Concessions along the western and eastern coasts of India, as well as two port terminals under Operations and Management agreements in the UAE at Fujairah Terminal and Dibba Port.

Proceeds from the IPO will be directed towards capital expenditure, the repayment of outstanding debts, and other general purposes. JSW Infrastructure also aims to expand its port asset portfolio and enhance operations through low-cost brownfield expansions and greenfield developments at strategic locations. Additionally, the company is open to considering acquisitions that would bolster its capabilities in container and liquid cargo handling.