JSW Infrastructure, the ports division of Sajjan Jindal’s JSW Group, has submitted bids for the purchase of three ports as part of the government’s privatization initiative totaling Rs.2,000 crore. The company’s capacity would increase by another 10–12% thanks to these ports.
In a separate development, the second-largest commercial port operator in the nation based on cargo handling capacity has set a price range of Rs.113-119 per share for its Rs.2,800 crore initial public offering (IPO), which will begin on Monday (September 25) and end on Wednesday.
JSW Infrastructure had 158.4 million tonnes of total cargo handling capacity as of the end of FY23, spread among nine ports and terminals on the eastern and western coasts. The business has been running since 1999.
India decided to gradually phase out its ownership of port operations and open the port industry to private enterprises as early as 1990. The 12 major ports owned by the Union government have seen 32 such agreements since July 3, 1997, when the first public private partnership concession was inked at Jawaharlal Nehru Port Authority.
The company plans to utilize the revenues from its IPO to pay off debt of Rs.880 crore, invest Rs.865.75 crore in a project to build an LPG terminal, and invest Rs.59.4 crore in the construction of an electric sub-station. Additionally, Rs.151.04 crore and Rs.103.88 crore would be utilized for the expansion at Mangalore Container Terminal, for its greenfield expansion plans, and for general corporate reasons.
JSW Infrastructure anticipates raising Rs.1,260 crore from key investors on September 22. After the IPO, JSW Infrastructure would list as a port business, joining Gujarat Pipavav Port and Adani Ports and Special Economic Zone.
By December 2022, the company’s net debt totaled Rs.2,875 crore. The company’s stock would be traded on both the BSE and NSE.
