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JSW Ports, the private commercial ports business of JSW Infrastructure, could dilute its stake through sale of equity or via an initial public offer next year. The company will determine the quantum of funds required based on the expansion opportunity available through acquisitions or greenfield project.
“Depending on any fund requirement we are prepared and within a year’s time we can go through the IPO route,” Lalit Singhvi, Director & CFO of JSW Infrastructure Limited, told BusinessLine. He added that the company is bidding for public port assets that are being privatised by the Government. The company plans to enhance its overall cargo-handling capacity from 153 mtpa to 200 mtpa within the next few years.
Debt repaid
The company, on Friday, said it has repaid high-cost rupee debt of ₹862 crore to a consortium of bankers comprising Axis Bank, Canara Bank, South Indian Bank, Union Bank of India and Bank of India. JSW Ports operates private commercial ports assets at Jaigarh and Dharamtar in Maharashtra.
It has completed large capex cycle entailing ₹4,000 crore (high cost long term rupee debt) invested over the last five years. Out of this, JSW Ports has already repaid more than ₹2,800 crore including the above stated long-term rupee debt. This capex has helped JSW Infrastructure in building a total cargo handling capacity of 153 mtpa and establish a prominent presence across major and non-major ports on East and West coasts.
Singhvi said the company is focusing on ramping up capacity utilisation, thereby generating higher revenue and EBITDA on the same capital base. Accordingly, JSW ports has steadily increased its capacity utilisation from 30 per cent at the start of its expansion cycle in FY17 to 50 per cent at the close of FY22 sequentially increasing the same over the years and is poised to achieve a utilisation rate of 60-65 per cent in current financial year.
According to Singhvi ,the company’s customer composition has broadened with an increase in third-party customer cargo from 5 per cent in 2017 to 30 per cent of its cargo profile.
Earlier this year, JSW Infrastructure raised funds through a debut $400 million sustainability linked bond issue, a first of its kind in the port sector. This was prudently utilised to refinance high-cost debt exposure from the Indian banking consortium capitalising on the Interest cost and elongation of the debt servicing.
Published on
September 16, 2022
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