All You Need To Know About JSW Infrastructure IPO

Salient Features of JSW Infrastructure IPO

Introduction

JSW Infrastructure IPO is closing today. Here is all you need to know about the company:

JSW Infrastructure Limited (JSW Infra) is a leading port operator in India. The company operates nine port concessions in India with an installed cargo handling capacity of 158.43 million tonnes per annum (MTPA) as of June 30, 2023. JSW Infra has a strong track record of growth, with its installed cargo handling capacity growing at a CAGR of 15.27% from March 31, 2021 to March 31, 2023.

The company is planning to raise ₹2,800 crore through an initial public offering (IPO) on the BSE and NSE. The IPO is expected to close on September 27, 2023.

Salient Features of the JSW Infrastructure IPO

• Offer size: The IPO comprises a fresh issuance of equity shares of the face value of ₹2 aggregating up to ₹2,800.00 Crores.
• Price band: The price band for the IPO is ₹113 to ₹119 per share.
• Lot size: The minimum lot size for the IPO is 126 shares.
• Reservation: 75% of the IPO is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.
• Purpose of the issue: The company plans to utilize the net proceeds from the IPO to prepay or repay all or a portion of certain outstanding borrowings of its fully owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd.

Key Strengths of JSW Infra

• Strong track record of growth: JSW Infra has a strong track record of growth, with its installed cargo handling capacity growing at a CAGR of 15.27% from March 31, 2021 to March 31, 2023.
• Diversified portfolio: JSW Infra has a diversified portfolio of ports and terminals located across the eastern and western coasts of India. This gives the company a competitive advantage in terms of reach and scale.
• Strong parentage: JSW Infra is a part of the JSW Group, a leading conglomerate in India. This gives the company access to financial and operational resources.

Investment Rationale

• Long-term growth potential: The Indian maritime sector is expected to grow significantly in the coming years, driven by factors such as increasing trade, economic growth, and government investments in infrastructure. JSW Infra is well-positioned to benefit from this growth trend.
• Strong financials: JSW Infra has strong financials, with healthy revenue growth and profitability. The company has a low debt-to-equity ratio and a strong track record of cash flow generation.
• Attractive valuation: The IPO is priced at an attractive valuation, compared to its peers.

Risks:

• Economic slowdown: An economic slowdown could lead to a decline in cargo volumes and impact the company’s revenue and profitability.
• Regulatory changes: The maritime sector is regulated by the government, and any changes in regulations could impact the company’s business.
• Competition: JSW Infra faces competition from other port operators in India.

Overall, JSW Infrastructure is a well-managed company with a strong track record of growth and profitability. The company is well-positioned to benefit from the long-term growth potential of the Indian maritime sector. The IPO is priced at an attractive valuation, compared to its peers. However, investors should be aware of the risks associated with the investment, such as economic slowdown, regulatory changes, and competition.

Conclusion:

JSW Infrastructure is a good investment opportunity for investors who are looking to invest in the Indian maritime sector. The company has a strong track record of growth and profitability, and it is well-positioned to benefit from the long-term growth potential of the sector. The IPO is priced at an attractive valuation, compared to its peers. However, investors should be aware of the risks associated with the investment, such as economic slowdown, regulatory changes, and competition.

Disclaimer: Investment in Capital Market as well as Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general guidance purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.

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