JSW Infrastructure’s new issues are expected to go on sale for the first time. We are currently accepting memberships as of September 27, 2023. The corporation not only has a substantial port infrastructure but also provides nautical services. The JSW infrastructure IPO will be listed on the BSE and NSE markets. A single application must have a minimum lot size of 126 shares. The fixed price of each share is between Rs. 113 and Rs. 119.
Get a thorough understanding of JSW infrastructure IPO financial statements and key data before investing in their initial public offering.
About the Company
JSW Group is owned by JSW Infrastructure as a subsidiary. This multinational business works in a wide range of sectors. It is the second-largest operator of commercial ports in India, with an enormous capacity for cargo handling. They started with the port concession in Goa’s Mormugao in 2002. These days, they hold nine port concessions dispersed over India, in addition to two international ports in Dibba, United Arab Emirates.
The business offers a wide range of services relating to the marine industry, such as logistical support, cargo handling, and storage solutions. They have a long-term income stream because their ports and port terminals have port concession periods.
JSW installed cargo handling capacity has grown at an impressive 15.27% from March 31, 2021, to March 31, 2023, in India.
Strengths of the Company :
To invest in the company you need to know the company’s strength. Given below is the list of the strengths of the company:-
- The company’s ports are conveniently close to important shipping lanes thanks to their strategic locations on India’s east and west coastlines. Importers and exporters can save money because of this location advantage.
- To ensure long-term visibility of cargo and income, JSW Infrastructure has negotiated long-term contracts with JSW Group Customers for cargo handling services at their port concessions.
- In addition to coal, fluxes iron ore, sugar, urea, steel products, rock phosphate, molasses, gypsum, barytes, laterites, and edible oil, the corporation works in multi-cargo ports and port terminals.
- JSW Infrastructure has expanded its portfolio to include projects for both imports and exports, and it has won many contracts to build and run terminals.
- The freight handling systems of the organization are predominantly mechanized, facilitating expeditious turnaround times and optimal resource use.
Weaknesses of the Company:
Given below is the list of the drawbacks of the company:-
- The operations and expansion of JSW infrastructure ipo are mostly reliant on licensing and concession agreements with the government. Any violation of these contracts may result in termination, which would be detrimental to business operations.
- The concession body may demand liquidated damages for project delays, which might affect the company’s capacity to maintain its financial stability.
- The JSW infrastructure ipo firm ships a significant amount of iron ore and coal. Its profitability may suffer if such shipments were significantly reduced or eliminated.
- Most JSW infrastructure ipo revenue comes from related party transactions, which it has many of with JSW Group companies. This extreme reliance and concentration may have an impact on company revenue.
- The company’s expansion ambitions may need substantial money because it works in a capital-intensive industry. There’s a chance the business won’t be able to raise this money and that its plans to develop more services and facilities won’t materialize.
Summary
JSW Infrastructure IPO will utilize the money it obtained from its initial public offering for several purposes. Investing in its fully-owned subsidiaries, JSW Jaigarh Port Limited and JSW Dharamtar Port Private Limited, is one way it plans to pay off some outstanding debt. In addition, it will be used to pay for capital projects, port upgrades and extensions, dredger setup, the building of an electric substation, and other business-related costs.
FAQs
Is JSW Infrastructure IPO a successful business?
Indeed, JSW Infrastructure IPO has had consistent revenue growth over the last three fiscal years, making it profitable. It reported net earnings of Rs. 330.44 crore in FY22 and Rs. 749.51 crore in FY23.
What portion of the IPO will be set aside for ordinary investors?
10% of the company’s whole issue size, or about Rs. 280 crore, has been set aside for individual investors.
Which JSW Group firms are listed on stock exchanges?
The Twp firms JSW Energy and JSW Steel are the only listed firms in this group, except JSW Infrastructure, which is scheduled to go public.