JSW Infrastructure Plans To Go Public By 2019
The company will come up with an IPO only after it reaches a 100 mt operational capacity.
JSW Infrastructure Ltd., a wholly owned subsidiary of the JSW Group, is likely to go public by 2019.
The company will come up with an initial public opening (IPO) only after it reaches an operational capacity of 100 million tonnes, which is likely by 2019, Sajjan Jindal, chairman of the group, said on Saturday.
...we may go for private placement to the level of between 10 percent and 15 percent, and after that we will go for IPO.Sajjan Jindal, Group Chairman, JSW Group
He was speaking on the sidelines of an event where Railway Minister Suresh Prabhu laid the foundation stone for constructing a railway line between JSW Group’s flagship port in Jaigarh in Maharashtra and Dighni in Bihar to provide last-mile connectivity.
The proposed investment for this public-private-partnership (PPP) project stands at Rs 777 crore.
Currently the debt on JSW Infrastructure’s books is Rs 1,700 crore, while that of its steel arm is Rs 4,200 crore, Jindal said.
Jindal has also chalked out expansion plans to ramp up capacity of Jaigarh port to 200 million tonnes by 2020, and strengthen its connectivity.
Jaigarh Port is a deepwater, multi-cargo, all-weather, greenfield private port that currently handles dry bulk but plans to handle container cargo in the future.
“We are now working to receive the Valemax, the largest ever 400,000-tonne iron ore carrier, and also 350,000-tonne very large crude carriers in the county. We have already done the master planning,” Jindal said.
The port, which is operational since August 2009, is beefing up its operational capacity to receive big bulk carriers, and natural gas and oil tankers.
The current capacity of Jaigarh Port is 40 million tonnes per annum (mtpa), which the company plans to double by 2020 and further take it up to 125 mtpa by 2025, he said.
The company has planned a capital expenditure of Rs 9,000 crore in the ports sector over the next three years, he said. Of which, the company has already invested Rs 2,000 crore in Jaigarh port. And he plans to spend another Rs 2,000 crore on Jaigarh port.
The company also plans to develop iron ore export terminal and coal export terminal at Paradip port in Odisha that will have about 50 mtpa capacity.
Apart from that, the company is also eyeing at opportunity at the proposed refinery by Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., and Bharat Petroleum Corporation Ltd. in the Konkan coast of Maharashtra.
With Inputs from PTI