JSW Infrastructure's Rs. 2,800 crore IPO aims for September launch
JSW Infrastructure, a leading maritime ports entity and subsidiary of the $23 billion JSW Group, is gearing up to launch its initial public offering (IPO) by September end. The IPO, consisting entirely of a fresh batch of equity shares, aims to raise funds for paying down debt and financing capital expenditure. The company's revenues have more than doubled from Rs. 1,143 crore back in FY19-20, to Rs. 2,273 crore in FY22-23.
IPO funds to fuel expansion and debt reduction
Back in May, JSW Infrastructure filed a draft red herring prospectus (DRHP) with market regulator SEBI for a Rs. 2,800 crore IPO. The proceeds from the IPO will reportedly be used to pay down the debt of its subsidiaries: Jaigarh Port and JSW Dharamtar Port. It will also be utilized for the capital expenditure of JSW Mangalore Container Terminal, among others. JSW Infrastructure plans to further expand its operations and solidify its position in the maritime ports sector.
Company's growth through port concessions
Since acquiring its first port concession at Mormugao, Goa in 2002, JSW Infrastructure has expanded its operations to nine port concessions across India. A contract where the government hands over the right to operate a port to a private enterprise is called a port concession. The company's diversified portfolio has positioned it as a major player in the maritime port industry.
2023: A year of major corporate IPOs
The year 2023 has witnessed several large corporations going public, including TVS Group (after roughly three decades) and Cyient DLM (26 years later). Moneycontrol suggests that Tata Technologies' IPO might be launched anytime this month. The trend of large IPOs is anticipated to continue, with more companies looking to raise capital through public offerings, reflecting a robust market for investors and businesses alike.
