JSW Infrastructure

About JSW Infrastructure IPO

Incorporated in 2006, JSW Infrastructure Limited is the fastest growing port-related infrastructure company and the second largest commercial port operator in India as of FY23. It provides maritime related services like cargo handling, storage solutions, logistics services and other value-added services. 

The company’s installed cargo handling capacity is 158 MTPA (Millions of Tonnes Per Annum) as of 31 March 2023. It serves the industrial hinterlands of Maharashtra, Goa, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, and the mineral rich belts of Chhattisgarh, Jharkhand and Odisha. It also operates two port terminals in the UAE under O&M agreements as of 30 June 2023. 

The company is part of the JSW group, a multinational conglomerate operating across various sectors like steel, energy, infrastructure, cement, paints, venture capital and sports. Its revenue from operations has grown at a CAGR of 25% and profit at a CAGR of 38% in the last three years. Moreover, the GoI initiatives such as Gati Shakti Scheme, National Logistics Policy and Bharatmala Pariyojana aims to improve the transportation infrastructure in the country and might be beneficial for the company. 

And now, JSW Infrastructure Limited is coming out with its initial public offer (IPO), which will completely be a fresh issue. The money raised will be used to repay borrowings, fund capital expenditure for investment in JSW Jaigarh Port and JSW Mangalore Container Terminal, and for general corporate purposes. Its shares will be listed on the NSE and the BSE.

Here are key details about the JSW Infrastructure IPO:

Financial snapshot

Here’s a quick look at the JSW Infrastructure IPO’s strengths, risks and threats

Strengths and opportunities

1. Fastest growing port-related infrastructure company and second largest commercial port operator in India operating nine port concessions with an installed cargo handling capacity of 158 MTPA as of 30 June 2023.
2. Multi modal evacuation infrastructure comprising a network of roadways, railways, mini-bulk carriers and conveyor systems, which enables it to provide customised supply chain solutions.
3. Predictable revenues driven by long-term concessions as port concessions are long life assets with concession periods typically ranging between 30 to 50 years. (Concessions are contracts wherein the government gives operating rights to private enterprises.)
4. Port concessions located closely to JSW Group Customers (Related Parties) and industrial clusters. These advantages accounted for 64% of the total cargo handled in the three month period ended 31 June 2023 as it came from JSW Group Customers and long-term third party customers. 
5. Consistent financial growth in recent years with EBITDA margins of 53%, 51% and 53% in FY21, FY22 and FY23, respectively. 
6. Diversified operations in terms of cargo profile, geography and assets.

Risks and threats

1. Has incurred a loss of ₹45 crore in the three month period ending 30 June 2023 and many of its subsidiaries have incurred losses in FY22 and FY23.
2. Operates in a capital intensive industry which accounted for the capital expenditure of ₹344 crore, ₹1,451 crore and ₹245 crore in FY21, FY22 and FY23 respectively.
3. Substantial indebtedness making up total borrowings of ₹4,228 crore as of 30 June 2023.
4. Subject to extensive environmental and other related regulations and policies.
5. Exposed to exchange rate fluctuations as 15%, 16% and 15% of its total revenue from operations was received in foreign currency in FY21, FY22 and FY23, respectively.
6. Experienced capacity utilisation of 35%, 38% and 56% in FY21, FY22 and FY23, respectively. 
7. Operates a labour intensive business with 673 full-time employees and 4,525 contract labour in India as of 30 June 2023. 

JSW Infrastructure IPO details

| JSW Infrastructure IPO date 

According to the offer document filed by the company with the SEBI, the JSW Infrastructure IPO’s opening date – in other words, the JSW Infrastructure IPO launch date – will be 25th September 2023. The JSW Infrastructure IPO closing date is 27th September 2023. After this, investors will be updated about the allotment status on 3rd October 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 5th October 2023. The JSW Infrastructure IPO listing date is 6th October 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| JSW Infrastructure IPO Price Band

The entire IPO is a fresh issue. The JSW Infrastructure IPO price band has been set between ₹ and ₹ per share. Interested investors can choose a price within this band to apply for the IPO. The JSW Infrastructure IPO listing price will be determined on 6th October 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| JSW Infrastructure IPO Lot size

The JSW Infrastructure IPO details have been declared. The JSW Infrastructure IPO lot size is set at shares and an investor can apply for a minimum of 1 lot. Meanwhile, the JSW Infrastructure IPO issue size is approx ₹ crore. 

How to pre-apply for the JSW Infrastructure IPO?

You can pre-apply for the JSW Infrastructure IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘JSW Infrastructure IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the JSW Infrastructure IPO?

If you are interested in this investment opportunity but unsure how to apply for the JSW Infrastructure IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the JSW Infrastructure IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘JSW Infrastructure IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the JSW Infrastructure IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the JSW Infrastructure IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your JSW Infrastructure IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the JSW Infrastructure IPO

To apply for the JSW Infrastructure IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the JSW Infrastructure IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the JSW Infrastructure IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.