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JSW Infrastructure Eyes Massive Equity Raise
23 Feb
Summary
- JSW Infrastructure plans equity fund raising of up to 250 million shares.
- The company aims to meet SEBI's minimum public shareholding norms.
- Aggressive capital expenditure plans are a key driver for the fund raise.
JSW Infrastructure has received board approval to raise equity by issuing up to 250 million shares, a quantity comparable to its initial public offering. This equity fund-raising, likely through a qualified institutional placement, serves a dual purpose: adhering to Securities and Exchange Board of India (Sebi) mandates on public shareholding and financing significant capital expenditure.
The company, listed on October 3, 2023, must reduce its promoter stake from the current 83.6% to 75% or less by October 2, 2026. The proposed issuance of approximately 250 million new shares represents a 12% dilution, aligning with this regulatory deadline.
If priced at ₹250 per share, this offering could yield over ₹6,250 crore, more than double the ₹2,800 crore raised in its IPO. These funds are crucial for JSW's projected capital expenditure of ₹16,500 crore for FY27 and FY28, primarily for port and logistics development.
The company anticipates substantial cargo volume growth, aiming for 134 million tonnes per annum by FY27 and a significant increase to 165-175 mtpa by FY28. This optimism stems from the planned commissioning of several projects, including an iron ore slurry pipeline in Odisha and capacity expansions at ports in Maharashtra.
These expansions are expected not only to boost volumes but also to enhance the company's EBITDA margin profile. Management forecasts a considerable rise in EBITDA for FY28, potentially doubling the FY26 estimate of ₹2,600 crore, with brokerage firms conservatively projecting around 75% growth over the same period.
