JSW Infrastructure, the ports business of Sajjan Jindal-led JSW Group, has placed bids worth Rs 2,000 crore to acquire three ports under the government’s privatisation move. These ports would add another 10-12% to the company’s capacity.
Separately, the country’s second-largest commercial port operator by cargo handling capacity, has set a price band of Rs 113-119 per share for its Rs 2,800-crore initial public offering (IPO), which will open on Monday (September 25) and close on Wednesday.
“Post this IPO, we will be net-debt free, we will have enough headroom to grow and if required we can raise additional capital also. So, we have placed bids for three ports that are coming up for privatisation,” Arun Maheshwari, joint MD & CEO, JSW Infrastructure, told FE in an interaction.
He, however, did not disclose the names of the ports and terminals.
“There are several opportunities such as Haldia, Paradip, Visakhapatnam, Thoothukudi (formerly Tuticorin), Goa, Kandla and JNPT, among others. We look at bidding for others as and when they open up,” he added.
As of FY23-end, JSW Infrastructure had a total cargo handling capacity of 158.4 million tonne across nine ports and terminals in eastern and western coasts. The company has been in operation since 1999.
India opened its port sector to private companies as early as 1990, with the government deciding to withdraw gradually from port operations and become a landlord. Since July 3, 1997, when the first public private partnership concession was signed at Jawaharlal Nehru Port Authority, the 12 major ports owned by the Union government, have witnessed 32 such partnerships.
The company would use its IPO proceeds to repay debt of Rs 880 crore, investment for an LPG terminal project (Rs 865.75 crore) and for setting up an electric sub-station (Rs 59.4 crore). Further, Rs 103.88 crore would be used for installation of a dredger and Rs 151.04 crore for the expansion at Mangalore Container Terminal, for its greenfield expansion plans and general corporate purposes.
JSW Infrastructure expects to raise Rs 1,260 crore from anchor investors on September 22. Following the IPO, JSW Infrastructure would be the third port company to be listed after Adani Ports and Special Economic Zone and Gujarat Pipavav Port.
“On the green projects, Utkal, which is on the east coast is being developed by JSW Steel, and one on the west coast, Keni in Karnataka, the bidding has been completed and government clearances are awaited,” he said.
The company has a net debt of Rs 2,875 crore as of December 2022. The company’s shares would be listed on both the BSE and NSE.