ET Intelligence Group: JSW Infrastructure, India’s second-largest commercial port operator, plans to raise Rs 2,800 crore through a fresh issue of shares. This is the first time in 13 years that JSW group is raising money through the IPO route. The IPO proceeds would be used to expand the Jaigarh port and Mangalore terminal, and for debt repayment.
The promoter holding will drop to 85.6% after the IPO from 96.4%. The company has reported one of the fastest cargo volume growth among port companies. It focusses on the terminal business that is less capital intensive and has a lower gestation period to generate cash flow. The company has revenue visibility since the JSW group is its anchor customer. The company has a long concession period (right given by the port authorities to operate the port) of more than 25 years. Given these factors, long-term investors may consider the company’s IPO.
