Thursday, July 25, 2024

JSW Infra to Double Cargo Handling Capacity with ₹13,000 Crore Investment

The company has a net debt of Rs 2,215 crore as of March 31, 2023. The company’s shares would be listed on both the BSE and NSE.

JSW Infrastructure, the port division of the JSW Group led by Sajjan Jindal, plans to invest ₹13,000 crore in the next seven years. This investment aims to double their current cargo handling capacity to 300 million tonnes. This expansion is almost as much as what the company achieved in the past two decades, during which they saw an average annual growth rate of 22%. In the initial 14-15 years, most of the growth came from their own operations, and in the last five years, it primarily came from other businesses, according to market sources.

The company aims to finance its expansion using its own profits and available cash, as per these insiders.

JSW Infrastructure, which has been operating since 2004, presently possesses a combined cargo handling capacity of 158.4 million tonnes across nine ports and terminals along the eastern and western coasts as of the end of FY23.

Furthermore, the company has strategic intentions to broaden its scope by venturing into containers, liquid terminals, and intends to participate in container freight stations, inland container depots, and other segments of maritime infrastructure. The objective behind this expansion is to provide comprehensive logistics solutions to its customers, as mentioned by one of the sources.

A JSW Infrastructure spokesperson did not respond to inquiries.

In the previous week, Arun Maheshwari, Joint MD & CEO of JSW Infrastructure, revealed during a press conference that the company had submitted bids worth ₹2,000 crore to acquire three ports as part of the government’s privatization initiative. If these bids are successful, they would contribute an additional 10-12% to the company’s capacity.

Market sources also indicate that JSW Infrastructure is actively considering participating in upcoming opportunities, including ports and terminals in locations such as Haldia, Paradip, Visakhapatnam, Thoothukudi (formerly Tuticorin), Goa, Kandla, and JNPT, among others.

JSW Infrastructure, the second-largest commercial port operator in the country, is all set to launch its Initial Public Offering (IPO) worth ₹2,800 crore, starting on Monday and concluding on Wednesday. The company had previously announced a price range of ₹113-119 per share.

On Friday, the company successfully raised ₹1,260 crore from anchor investors by allotting 10.59 crore shares at a price of ₹119 per share. Notable participants in the anchor book included sovereign wealth funds from Singapore, namely GIC and Fullerton, as well as renowned entities like Morgan Stanley, HSBC Global, and prominent mutual funds such as SBI MF and ICICI Pru MF, among others.

Notably, as of March 31, 2023, JSW Infrastructure carries a net debt of ₹2,215 crore. They have already raised ₹1,260 crore from anchor investors, including Singapore’s sovereign wealth funds – GIC and Fullerton, as well as other prominent investors and mutual funds.

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