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JSW Infrastructure's qualified institutional placement (QIP) received strong investor interest, attracting bids worth more than INR 50,350 crore against an indicative issue size of up to INR 7,503 crore. The issue saw participation from major domestic and international institutional investors, reflecting confidence in the company's port and logistics expansion plans. The funds will support greenfield port development, strategic acquisitions and debt reduction. The response also highlights investor optimism around India's growing infrastructure sector and JSW Infrastructure's long-term plans to expand capacity and strengthen its logistics network.
JSW Infrastructure's qualified institutional placement (QIP) has garnered bids worth more than INR 50,350 crore, nearly seven times the indicative issue size of up to INR 7,503 crore, according to merchant bankers associated with the transaction.
The QIP, launched earlier this week, witnessed participation from leading domestic and global institutional investors, indicating strong confidence in India's ports and logistics infrastructure sector and the company's expansion strategy.
The company proposed to raise up to INR 7,502.7 crore through the issuance of 23 crore fresh equity shares. The fundraising exercise also includes an offer for sale (OFS) of 3.32 crore shares by the promoter. At the floor price of INR 285 per share, the fresh issue is valued at INR 6,555 crore, while the OFS is valued at INR 947.7 crore.
The shares were offered at a floor price of INR 285 apiece, representing a 7.2% discount to the company's closing price of INR 307.25 on the BSE before the issue opened.
According to merchant bankers, the proceeds from the fresh issue will be used to fund greenfield port expansion projects, pursue strategic acquisitions and reduce debt. The strong response from investors reflects confidence in the company's long-term growth plans as it targets cargo-handling capacity of 400 million tonnes per annum (MTPA) by FY30 and aims to evolve into an integrated logistics solutions provider.
JSW Infrastructure is currently India's second-largest private commercial port operator. In recent years, the company has expanded beyond port operations by strengthening its multimodal logistics network through rail connectivity, inland container depots (ICDs), multimodal logistics parks and coastal logistics services.
As per its latest investor presentation, the company has guided for port business revenue of INR 8,000 crore and EBITDA of INR 4,300 crore by FY28. Its logistics business is expected to contribute revenue of INR 2,800 crore and EBITDA of INR 700 crore during the same period.
To support these growth plans, JSW Infrastructure has earmarked around INR 9,000 crore in capital expenditure between FY25 and FY30.
Shares of JSW Infrastructure were trading 2.69% lower at INR 329.20 apiece on the BSE.
Source PTI
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