JSW INFRASTRUCTURE LIMITED

JSW INFRASTRUCTURE LIMITED - IPO DETAILS 

Company Overview 

JSW Infrastructure Limited, established in 2006, specializes in maritime-related services such as cargo handling, storage solutions, and logistics services. The company focuses on developing and operating ports and port terminals under Port Concessions. JSW Infrastructure Limited is part of the larger JSW Group and collaborates with JSW Group Customers (Related Parties) to pursue growth initiatives. In terms of cargo handling capacity, it stood as the second-largest commercial port operator in the country in Fiscal 2022. 

The company's expertise covers a wide range of cargo types, including dry bulk, break bulk, liquid bulk, gases, and containers. Among the various cargoes handled are thermal coal, non-thermal coal, iron ore, sugar, urea, steel products, rock phosphate, molasses, gypsum, barites, laterites, edible oil, LNG, LPG, and containers. JSW Infrastructure typically secures long concession periods, lasting between 30 to 50 years, ensuring sustained revenue streams over the long term. 

The company has a nationwide presence, with Non-Major Ports located in Maharashtra and port terminals situated at Major Ports in industrial regions such as Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast. JSW Infrastructure also extends its reach internationally with two terminals in the UAE, at Fujairah and Dibba. As of June 30, 2023, JSW Infrastructure Limited operates nine Port Concessions in India, boasting an installed cargo handling capacity of 158.43 million metric tonnes per annum (MTPA). The company's installed cargo handling capacity in India has displayed robust growth at a Compound Annual Growth Rate (CAGR) of 15.27% from March 31, 2021, to March 31, 2023. 

Objective of the IPO 

Here are a few quick reasons why JSW Infrastructure Limited going public:  

1. Repayment, either in full or in part, of certain outstanding borrowings. This will involve investing in wholly owned subsidiaries, namely, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited. 

2. Financing capital expenditure needs by investing in the wholly owned subsidiary, JSW Jaigarh Port Limited. This investment will support proposed expansion and upgrading projects at Jaigarh Port, including: Expansion of the LPG terminal (referred to as the "LPG Terminal Project"). Establishment of an electric sub-station. Purchase and installation of a dredger. 

3. inancing capital expenditure requirements through investment in the wholly owned subsidiary, JSW Mangalore Container Terminal Private Limited. This investment will facilitate the expansion of the Mangalore Container Terminal (referred to as the "Mangalore Container Project"). 

4. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company's ports enjoy strategic positioning on both the west and east coasts of India, offering convenient access to key shipping routes. This strategic location not only enhances accessibility but also results in cost efficiencies for importers and exporters. 

2. JSW Infrastructure has successfully secured long-term contracts with JSW Group Customers for cargo handling services at their Port Concessions. These agreements provide the company with sustained, long-term visibility of both cargo and revenue. 

3. The company operates in multi-cargo ports and port terminals, facilitating the handling of diverse types of cargo. These cargoes include coal, fluxes, iron ore, sugar, urea, steel products, rock phosphate, molasses, gypsum, barytes, laterites, and edible oil. 

4. JSW Infrastructure has strategically expanded its portfolio to cater to both export and import activities. The company has successfully secured numerous bids for the development and operation of terminals, further enhancing its presence and capabilities in the industry. 

Cons 

1. JSW Infrastructure's operations and growth are significantly reliant on government concession and license agreements. It's important to note that any violation or breach of these agreements could potentially result in termination, which could have adverse consequences on the company's operations and business prospects. Compliance with these agreements is crucial for the company's continued success and expansion. 

2. JSW Infrastructure engages in numerous related party transactions with entities within the JSW Group, and a substantial portion of its revenue is generated from these transactions. This heavy concentration and dependence on related parties could potentially pose a risk to the company's business revenue.  

3. The company manages a significant volume of coal and iron ore cargo, which plays a vital role in its operations. Any substantial reduction or elimination of these cargo types could potentially have a negative impact on the company's profitability. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”