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Sajjan Jindal-led JSW Infrastructure is looking to raise about Rs 1,000 crore by offloading 10 per cent of shares to private equity or strategic partners, its CEO Capt BVJK Sharma revealed, as it sets its sight on public listing in two years.
JSW Infrastructure, which expects to handle 80 million tonne cargo at its port by the end of this year, is valuing the business at Rs 10,000 crore, matching the prevalent multiple of 15-16 times EBITDA used to value mature ports such as Adani Ports and Gujarat Pipavav, according to investment bankers.
“We just don’t need money but also strategic inputs from a partner, which can help me grow and put us across bigger international players. Large private equity players who have invested in ports before would be great,” Sharma said.
The funds will be used for expansion and partly paying off some debt. It has about Rs 1,700 crore debt on its books today. JSW Infrastructure expects to post an EBITDA of Rs 650 crore at the end of this financial year, compared with Rs 500 crore last year. It wants to reach an EBTIDA of 1500 crore before considering an IPO, Sharma said.
He said JSW Infrastructure would look at a listing between March 2018 and March 2019. The target is to be counted in top 5 at least once they are listed. The cargo handling at their ports is expected to jump to 80 million tonne from 33 MT by year-end. It is targeting volumes of 200 MT by 2020. It has hired PWC to find an international partner for boosting its container business.
“Large global container ports have plans to invest in India. They may not probably like to invest in a port but may prefer a portion of port under their full control. We are open to that,” said Sharma, who is not keen to lose management control through a majority stake sale.
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