Sajjan Jindal-owned JSW Infrastructure Limited filed its Red Herring Prospectus for entry into the primary market with an initial public offer (IPO) last week. JSW Infrastructure has set a price band of INR 113-119 per share for its initial public offering, which is opening on September 25. The offer comprises only a fresh issue by the company and does not have an offer-for-sale component.

Investors can bid for a minimum of 126 Equity Shares and in multiples of 126 Equity Shares thereafter. The Issue is entirely a fresh issue of Equity Shares worth INR 2,800 crore.

As per available sources, the objects of the issue is to prepay or repay INR 880 crore of it’s outstanding borrowings; finance capital expenditure requirements amounting to INR 865.75 crore for an LPG Terminal Project, INR 59.4 crore for setting up an electric sub-station, INR 103.88 crore for the purchase and installation of a dredger and finance INR 151.04 crore for the proposed expansion at Mangalore Container Terminal besides general corporate purposes.

The company will make use of net fresh issue proceeds for repaying debts amounting to INR 880 crore, and INR 1,029.04 crore will go towards expansion or upgradation works at Jaigarh Port, owned by subsidiary, JSW Jaigarh Port, as per the company.

JSW Infrastructure Limited is a port-related infrastructure company which received initial cargo from the JSW Group as anchor customer. In addition to partnering with JSW Group Customers, the Company has expanded its customer base to include third-party customers across geographies and has expanded its cargo mix by leveraging its locational advantage and maximizing asset utilization.