JSW Infrastructure Limited IPO

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i. JSW Infrastructure is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during Fiscal 2021 to Fiscal 2023, and the second largest commercial port operator in India in terms of cargo handling capacity in Fiscal 2023. Their operations have expanded from one Port Concession at Mormugao, Goa that was acquired by the JSW Group in 2002 and commenced operations in 2004, to nine Port Concessions as of June 30, 2023 across India, making us a diversified maritime ports company.

ii. They provide maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to thier customers, and are evolving into an end-to-end logistics solutions provider. They develop and operate ports and port terminals pursuant to Port Concessions. Their ports and port terminals typically have long concession periods ranging between 30 to 50 years, providing us with long-term visibility of revenue streams. As 2023, the capacity weighted average balance concession period of their operational ports and terminals is approximately 25 years with Jaigarh Port, one of the largest assets, having a balance concession period of 35 years.

iii. They have a diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast. The Port Concessions are strategically located in close proximity to their JSW Group Customers (Related Parties) and are well connected to cargo origination and consumption points. This enables them to serve the industrial hinterlands of Maharashtra, Goa, Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, and mineral rich belts of Chhattisgarh, Jharkhand and Odisha, making their ports a preferred option for their customers.

iv. They have developed two greenfield Non-Major Ports, four port terminals at Major Ports including a container terminal project in New Mangalore (Karnataka), and have acquired three port terminals in India. We are in the process of undertaking similar greenfield projects and are exploring selective inorganic growth opportunities to further expand our capacities, customers, service offerings and geographical footprint.

Competitive Strengths

i. Fastest growing port-related infrastructure company and second largest commercial port operator in India
ii. Strategically located assets at close proximity to JSW Group Customers (Related Parties) and industrial clusters supported by a multi-modal evacuation infrastructure
iii. Predictable revenues driven by long-term concessions, committed long-term cargo and stable tariffs

Objects of the JSW Infrastructure Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: 1. Prepayment or repayment, in full or part, of all or a portion of certain outstanding borrowings through investment in the wholly owned Subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited. 2. Financing capital expenditure requirements through investment in the wholly owned subsidiary, JSW Jaigarh Port Limited, for proposed expansion/upgradation works at Jaigarh Port i.e., i) expansion of LPG terminal ("LPG Terminal Project"); ii) setting up an electric sub-station; and iii) purchase and installation of dredger. 3. Financing capital expenditure requirements through investment in the wholly owned subsidiary, JSW Mangalore Container Terminal Private Limited, for the proposed expansion at Mangalore Container Terminal ("Mangalore Container Project"). 4. General corporate purposes.

JSW Infrastructure Limited IPO Details:

Open Date: Sep 25 2023
Close Date: Sep 27 2023
Total Shares: 23,52,94,118
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 2800 Cr.
Lot Size: 126 Shares
Issue Price: ₹ 113 to ₹119 Per Equity Share
Listing At: NSE,BSE
Listing Date: Oct 06 2023

Promoters And Management:

Sajjan Jindal, aged 63 years, is the Chairman and Non-Executive Director and the Individual Promoter of the Company. He holds a bachelor’s degree in mechanical engineering from Bangalore University. He has been associated with JSW Steel Limited as its managing director since 1997 and is currently the chairperson and managing director of JSW Steel Limited. He is the vice chairman of the World Steel Association and is also on the board of directors of JSW Energy Limited. He was previously associated as a director with JSW Bengal Steel Limited, National Skill Development Corporation and The Associated Chambers of Commerce and Industry of India. He has over 36 years of experience in the manufacturing and steel industry. He is a recipient of the EY Entrepreneur of the Year 2022 award, Business Standard CEO of the Year award in 2018 and the IIM JRD Tata award for Excellence in Corporate leadership in Metallurgical Industries, 2017. Nirmal Kumar Jain, aged 77 years, is the Vice Chairman and Independent Director of the Company. He holds a bachelors’ degree in commerce from Jiwaji University, Gwalior. He has passed the final examination held by the Institute of Chartered Accountants of India and has passed the final examination held by the Institute of Company Secretaries in India. He joined Jindal Iron & Steel Company Limited in 1992 as general manager – finance. He has over 21 years of experience in the financial services sector. Arun Sitaram Maheshwari, aged 53 years, is the Joint Managing Director and Chief Executive Officer of the Company. He holds a bachelors’ degree in commerce from Ajmer University. He has passed the final examination of master of business administration held by Mohanlal Sukhadia University, Udaipur. He has previously been associated with Jindal Strips Limited, Jindal Iron & Steel Company Limited and Jindal Vijaynagar Steel Limited. He has over 30 years of experience in the areas of marketing, import (raw materials), corporate strategy and infrastructure. He has been associated with the Company since April 18, 2019.

Financials of JSW Infrastructure Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23 3MFY24
Equity Share Capital 599.29 599.29 3,595.75 3,595.75
Reserves 28,312 32,122 36,351 39,465
Borrowings 39,458 44,087 42,437 42,284
Trade Payables 2,151 2,748 3,016 2,596
Other Liabilities 12,024 14,739 9,107 8,375
Total Liabilities 53,634 61,573 54,560 53,255
Net Block 33,189 34,262 34,216 33,766
Capital Work in Progress 2,921 701 450 540
Investments 2,955 2,830 25 29
Other Assets 29,455 33,139 31,913 31,709
Total NC Assets 68,520 70,932 66,604 66,044
Receivables 4,818 6,013 4,024 3,901
Inventory 991 854 1,022 1,025
Cash & Bank 2,648 10,382 16,316 17,432
Other Assets 5,568 6,113 6,540 7,914
Face value 2 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23 3MFY24
Sales 16,036 22,731 31,947 8,781
Raw Material Cost 5,746 8,582 12,066 3,212
Employee Cost 1,114 1,497 2,300 727
Other Expenses 1,012 1,558 1,380 329
Other Income 747 1,057 1,781 401
EBITDA 8,911 12,151 17,983 4,915
EBITDA Margin 55.57% 53.46% 56.29% 55.97%
Depreciation 2,707 3,695 3,912 947
Interest 2,279 4,196 5,961 -158
Profit before tax 3,926 4,260 8,110 4,125
Tax 1,080 955 615 903
Net profit 2,846 3,304 7,495 3,222
NPM (%) 16.96% 13.89% 22.22% 35.09%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23 3MFY24
Cash From Operating Activity
Profit From Operation 8,731 11,908 17,827 4,970
Receivable 907 -1,195 1,990 122
Inventory 260 137 -168 -3
Payable 568 597 268 -420
Other WC Items 97 1,539 -138 -586
Working Capital Changes 1,832 1,077 1,952 -886
Direct Taxes -661 -1222 -1807 -440
Net Cash Inflow from Operating Activity 9902 11762 17972 3645
Cash from Investing Activity
Fixed assets purchased -17,226 -5,091 -2,794 -576
Fixed assets sold 1,301 23 103 0
Investments purchased -332 0 -3,972 -1,995
Investment sold 1,151 125 3,775 402
Inter-corporate deposits -1,576 -3,602 -5,035 -1,229
Other investing items 314 532 1,715 193
Net cash inflow from investing activities -16,368 -8,013 -6,208 -3,205
Cash from Financing Activity
Proceeds from borrowings 13,435 35,108 679 150
Repayment of borrowings -4,553 -31,200 -5,733 -227
Intrest paid fin -2,249 -3,621 -2,727 -217
Other financing items -224 -262 -3,085 -260
Net Cash Flow -58 3,775 899 -113

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
JSW Infrastructure Limited 3195 750 3.57 33.3 119 24,990
Adani Ports & Special Economic Zone Ltd 20852 5,393 24.58 24.3 831 1,79,562
*  All the data is as per FY23.

Recommendation on JSW Infrastructure Limited IPO:

Review And Recommendation of JSW Infrastructure IPO by IZ team is 6/10

A) Importance of the Port Industry

1. Gateway to Trade: Ports are a critical entry and exit point for international trade, which forms the backbone of any strong economy. 2. Supply Chain: Ports are integral to logistics and supply chain management, influencing various industries like manufacturing, import-export, and even retail. 3. Growth Indicator: Investment in port infrastructure often correlates with economic growth, making it a valuable sector to consider.

B) Why JSW Infrastructure?

1. Diversification: With nine Port Concessions across India, the company has a diverse range of services, including cargo handling and storage solutions, making it resilient against market downturns in specific segments. 2. Strategic Locations: The ports are situated near industrial zones and have good connectivity, increasing their utility and reducing logistical costs. 3. Long-term Revenue Visibility: The company's long concession periods (average of 25 years) provide stability and visibility of revenue streams. 4. High Growth: Being the fastest-growing port-related infrastructure company in India, it has solid momentum that can be expected to continue. 5. Alignment with JSW Group: Given that the ports are closely located to other JSW Group ventures, there's a built-in customer base that assures a minimum level of demand.

Financial Health

1. Revenue in FY21: ₹1,603.6 Crore increased to ₹3,195 Crore. Indicating a strong growth. 2. Strong EBITDA Margins: At 56.29%, the high EBITDA margin indicates operational efficiency. 3. Net Profit Margins: A 22.22% net profit margin signifies a good bottom line after all expenses, indicative of strong management and operational capabilities. The PAT has also increased from INR 284 Cr in Fy21 to INR 750 Cr in Fy23. 4. In the last 3 years, the company has generated a cash of ~4000 Cr from operations. 5. Debt Management: The IPO aims to repay a portion of its borrowings, which would strengthen its balance sheet.

Use of Funds

1. Debt Repayment: A significant part of the proceeds will be used to repay debt, which will improve the company's leverage ratios. 2. Expansion Plans: Investment in new terminals and upgrading existing ones ensures that the company is preparing for future demand.


1. P/E Ratio: At 33.3, the P/E ratio is higher than its closest peer (Adani Ports at 24.3), which indicates higher growth expectations from the market. 2. EPS: An EPS of ₹3.57 shows profitability on a per-share basis, making it attractive for investors.


1. Competition: The port sector has fierce competition, including well-established players like Adani Ports. 2. Regulatory Risks: Being a part of the infrastructure sector, it is subject to various regulatory guidelines which can impact business.


Investing in JSW Infrastructure offers a blend of stability and growth. It has a diversified and strategically located asset base, strong financials, and plans for expansion funded by the IPO. While there are inherent risks associated with the port industry and competition, the company's fundamentals and growth trajectory make it a compelling investment opportunity.

Registrar of JSW Infrastructure Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

JSW Infrastructure Limited JSW Centre, Bandra Kurla Complex Bandra (East), Mumbai - 400 051 Phone: +91 22 4286 1000 Email: infra.secretarial@ jsw.in Websitehttps://www.jsw.in/infrastructure

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