blog/article-blog/JSW Infrastructure - Mainboard IPO

Oct 5, 2023

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JSW Infrastructure - Mainboard IPO

JSW Infrastructure- IPO Launch


Incorporated in 2006, JSW Infrastructure, a vital arm of the JSW Group, stands at the forefront of India's infrastructure development. With a robust presence in sectors like ports, terminals, and logistics, JSW Infrastructure has become a symbol of innovation, efficiency, and growth. This dynamic entity plays a pivotal role in shaping the nation's infrastructure landscape, facilitating trade, and propelling India's economic progress.

The JSW Group, a name synonymous with innovation, excellence, and growth, has taken a significant step towards fostering entrepreneurship with the launch of Initial Public Offering (IPO).

JSW Infrastructure IPO is all set to go live on the 3rd of October.

The company intends to raise Rs. 28000 Cr. by issuing fresh shares. Let's understand in detail with the help of a table:

JSW Infrastructure Limited IPO Date/Timetable:


Open Date

Close Date

Lot Size

IPO Size

Issue Price

Minimum Investment

Lead Manager

Listing At

3rd October

5th October

126 Shares

Rs. 2800 Cr.

Rs. 113-119

Rs. 14,500

JM Financial Limited

National Stock Exchange


JSW Infrastructure- IPO- Promoters & Management:

The company has 8 Directors, of which 4 are independent directors including 1 Woman Independent Director. The company has 4 Key Managerial Posts held by:

  1. Sajjan Jindal: Chairman & Non-Executive Director

  2. Nirmal Kumar Jain: Vice Chairman & Independent Director

  3. Arun Sitaram Maheshwari: Joint Managing Director & Chief Executive Officer (CEO)

  4. Lalit Chandanmal Singhvi: Whole Time Director & Chief Financial Officer (CFO)

JSW Infra- IPO- Grey Market Premium (GMP):

​JSW Infrastructure was listed at a 20% premium of Rs.143 per share versus an issue of Rs. 119 per share.


JSW Infrastructure- IPO- Financial Performance (In Crores):


Financials

31 March 2021

31 March 2022

31 March 2023

Assets

8254.55

9429.46

9450.66

Revenue

1678.26

2378.74

3372.85

Profit After Tax

284.62

330.44

749.51

Net Worth

2831.18

3212.31

3934.64

Reserves & Surplus

2829.84

3208.98

3645.75

Total Borrowing

3945.82

4408.69

4243.70


The company revenue has consistently grown over the past 3 years & as of 31st March 2023 stood at Rs. 9450.66 Cr. in comparison to Rs. 8254.55 Cr. in 2021.

Similarly, the company’s PAT has also seen a substantial growth from Rs. 284.62 Cr. in 2021 to Rs. 749.51 Cr. in 2023

Company borrowing has also seen a steady hike from Rs. 3945.82 Cr. in 2021 to Rs. 4243.70 Cr. in 2023.

JSW Infrastructure- IPO- Comparison with Industry Peers:​


Categories

JSW Infrastructure

Adani Ports & Special Economic Zone

J Kumar Infra


Market Cap.

33,000 Cr.

1,78,175 Cr.

3319 Cr.

P/E

29.67

24.1

11.57

P/B

8.10

3.92

1.39

EV/EBITDA

15.11

16.20

5.37


JSW Infrastructure has a market cap. almost 10 times as big as its industry peer J Kumar Infra but is sizably lower than its peer Adani Ports while its Price to Earning stands at 29.67 which is still lower than the Industry Price to Earning (P/E) of 33.0 but larger than both its peers Adani & J Kumar who stand at 24.1 & 11.57 respectively. A sizable Price to Earnings which is still below Industry standards shows that people are willing to pay a decent amount for every rupee earned by the company signifying the long-term trust in the growth potential of the company. JSW has a book value that is almost seven times (approx ~ 8.10) 2.25 times its peer Adani & 7 times its peer J Kumar Infra which is a concern since Industry PBV stands at just 2.16. The company’s EV/EBITDA is also a concern since it is 5 times that of its peer J Kumar, although is still below Adani which stands at 16.20 & usually a high EV/EBITDA is considered as an indicator of the company being overvalued.

Conclusion:

In conclusion, JSW Infrastructure's unwavering dedication to transforming India's infrastructure sector is an embodiment of the JSW Group's core values of excellence and sustainability. Through its state-of-the-art facilities, strategic investments, and commitment to operational efficiency, JSW Infrastructure has not only bolstered the nation's logistics and trade capabilities but has also contributed significantly to the country's economic growth.

Category: Investments

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