JSW Infrastructure is understood to be exploring a qualified institutional placement of shares in the range of ₹5,000-6,000 crore, which will be partly used for capacity expansion, sources said.
The QIP will also serve the purpose of diluting the promoters’ stake and go partway towards meeting its target of reducing the promoter stake to 75 per cent, which will be done over time.
A spokesperson for JSW Group said in response to a query on the subject, “We are not in any discussion, and no such proposal has been placed for discussion before the Board.”
On Monday, the company said it had approved spending ₹2,359 crore for capacity expansion at its ports in Jaigarh and Dharamtar. The combined capacity at the two ports will be increased by 36 million tonnes per annum (mtpa), with 21 mtpa at Dharamtar and 15 mtpa at Jaigarh. The expansion will increase the overall capacity of Jaigarh Port to 70 mtpa from the current 55 mtpa, and Dharamtar Port to 55 mtpa from the current 34 mtpa.
Its stated aim is to increase its total capacity to 400 mtpa by 2030 from the current 170 mtpa. This will be achieved both through expansion of capacities at its existing ports, new port concessions, and acquisitions. It has an upcoming port at Jatadhar and a potential project pipeline of 82 mtpa.
The promoter stake in JSW Infrastructure is currently 85.61 per cent. The company made its public markets debut last year and has three years to bring down the promoter stake to the level mandated by the regulator. The management has previously mentioned a follow-on public offer to reduce the promoter stake, but some part of the dilution can also be achieved through a QIP, which is a much quicker process compared to a public issue.