JSW Infra’s QIP Attracts Seven-Fold Demand With Rs 50,350-Cr in Bids

New Delhi: Sajjan Jindal-promoted JSW Infrastructure‘s qualified institutional placement (QIP) received bids worth over Rs 50,350 crore, nearly seven times the indicative issue size of up to Rs 7,503 crore, according to merchant bankers handling the issue. The QIP, launched on June 22, witnessed strong participation from leading domestic and global institutional investors, reflecting robust appetite for India’s ports and logistics infrastructure sector.

The company planned to raise up to Rs 7,502.7 crore through a QIP of 23 crore fresh equity shares, alongside an offer for sale (OFS) of 3.32 crore shares by the promoter. At the floor price of Rs 285 per share, the fresh issue is valued at Rs 6,555 crore, while the OFS is worth Rs 947.7 crore. The shares were offered at a floor price of Rs 285 apiece, representing a 7.2 per cent discount to the company’s June 22 closing price of Rs 307.25 on the BSE.

According to merchant bankers, the company plans to utilise the proceeds from the fresh issue to fund greenfield port expansions, pursue strategic acquisitions and reduce debt. The strong investor response suggests confidence in the company’s long-term growth strategy as it aims to expand its cargo-handling capacity to 400 million tonnes per annum (MTPA) by FY30 while transforming into an integrated logistics solutions provider.

JSW Infrastructure is India’s second-largest private commercial port operator and is expanding its multimodal logistics network by strengthening rail connectivity, inland container depots (ICDs), multimodal logistics parks and coastal logistics capabilities.

According to its latest investor presentation, JSW Infrastructure has guided for port business revenue of Rs 8,000 crore and EBITDA (operating profit) of Rs 4,300 crore by FY28. Its logistics business is expected to generate revenue of Rs 2,800 crore and EBITDA of Rs 700 crore during the same period.

The company has earmarked around Rs 9,000 crore in capital expenditure between FY25 and FY30 to support its expansion plans. Meanwhile, shares of JSW Infrastructure were trading 2.69 per cent lower at Rs 329.20 apiece on the BSE.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)