The company has set an indicative issue price of Rs 285 per share, representing a 7.2% discount to Monday’s NSE closing price of Rs 307.05. The issue is being launched at a discount to the SEBI floor price of Rs 290.35 per share.
The fresh issue will result in a dilution of around 9.9% of the post-issue equity capital, while the OFS component accounts for approximately 1.4%.
Funds to support expansion and reduce debt
JSW Infrastructure plans to utilise the proceeds from the fresh issue to finance capital expenditure through investments in its subsidiaries for ongoing development projects. A portion of the funds will also be used to prepay or repay outstanding borrowings of the company and certain subsidiaries.
The company has also earmarked part of the proceeds for strategic investments, inorganic growth opportunities through acquisitions, and general corporate purposes.
The capital raise comes as JSW Infrastructure continues to expand its ports and logistics business through both organic capacity additions and acquisitions.
QIP to close this week
The institutional share sale was launched on Monday, June 22, with the book expected to close by Tuesday morning, although the company retains the option to close the issue earlier depending on investor demand.
Pricing is expected around June 25, while listing approvals from the stock exchanges are targeted by June 30. Trading in the newly allotted shares is expected to commence around July 1.
The company and its promoters have agreed to lock-up periods of 60 days and 12 weeks, respectively, subject to customary exceptions.
The QIP is being managed by a consortium of investment banks, including SBI Capital Markets, JM Financial, Avendus Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), and Jefferies India.
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JSW Infrastructure has been expanding rapidly over the past few years, adding port capacity through acquisitions and greenfield developments as it seeks to strengthen its position in India’s fast-growing logistics and maritime infrastructure sector. The latest fundraiser is expected to provide financial flexibility to support the next phase of growth while also improving the company’s balance sheet through debt reduction.
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