IPO listed on 3 Oct'23
JSW Infrastructure Ltd
Minimum Investment
₹ 14,994 / 126 shares
Grey market premium
₹ 18 (15% premium)
Issue price
₹ 119
Listing price
₹ 143
% since launch
Listing on
Oct 3, 2023
Our Verdict:
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- JSW Infrastructure Ltd stands as a major player among India's port operators, boasting a comprehensive cargo range and a diverse geographic footprint. The firm has also shown strong upward trends in both revenue and profit, with commendable margins and return ratios. Further, the government's focus on port enhancement, limited competitors in the market, and strong support from its parent entity hint at promising prospects for the company.
- From a valuation standpoint too, the IPO is valued at 19x Q1FY24 P/E on annualized and diluted basis, which looks attractive. Additionally, the grey market premium, a common indicator of investor sentiment, indicates a premium listing.
- Based on these factors, investors may consider subscribing to this IPO from a long-term perspective.
About the company
Founded in
21 Apr'06
Managing director
Arun Sitaram Maheshwari
- A part of the reputed JSW Group, JSW Infra is India's second-largest commercial port operator, processing 92.8 MMTPA in FY23. It stands out as the fastest growing port-related infrastructure company, demonstrating substantial growth in installed cargo handling capacity and cargo volumes handled during FY21-FY23.
- With a tactical footprint across both the West and East coasts of India, the company operates through 9 Ports and Terminals. It boasts an operational capacity of 158.4 MMTPA, reflecting a 15% CAGR from FY21-23, and currently utilizes 62.6% of this capacity.
STRENGTHS
- Stellar Financial Track Record: In recent times, the company has maintained a steady financial ascent. From Fiscal 2021 to 2023, revenue from operations, EBITDA, and net profit have experienced growth at CAGRs of 42%, 41%, and 62%, respectively.
- Solid Financial Metrics: The company boasts an average EBITDA margin of approximately 50%. Additionally, it has a commendable Return on Equity at 21%. After repayments, the Net Debt to Equity ratio is expected to be around -0.2x.
RISK FACTORS
- High Capital Requirements: JSW Infra operates within a sector that demands significant capital investment. Any inability to secure necessary funds for future capital expenditures might negatively affect its forthcoming profitability.
- Dependency on Specific Cargo Types: The company processes a vast majority (65%) of its volume in coal and iron ore. A notable decrease or discontinuation of such cargo could have detrimental effects on their operations.
- Reliance on Group Clients: Approximately 51% of their business originates from customers within the JSW group. Any potential defaults or a drop in demand could pose challenges for the company.
- Past Subsidiary Performance: Some of the company's subsidiaries have previously reported losses. Should these subsidiaries persist in underperforming, it might unfavourably impact the overall consolidated financial health and operational results of the parent company.
Issue details
Issue type
Mainstream
Issue size
₹ 2,800 crore
Fresh Issue
₹ 2,800 crore
OFS
₹ -
Price range
₹ 113 - 119
Lot size
126 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Repayment and/or pre-payment of certain outstanding borrowings availed by the company;
- Financing capital expenditure requirements through investments in subsidiaries; and
- General corporate purposes.
Dates
Bidding open
25 Sep'23
Bidding close
27 Sep'23
Allotment date
28 Sep'23
Refund date
29 Sep'23
Listing
3 Oct'23
IPO Reservations
Qualified institutional buyers
30%
Non-institutional investors
15%
Retail individual investors
10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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