JSW Infrastructure has launched a qualified institutional placement (QIP) to raise up to Rs 7,503 crore ($794 million), with the proceeds earmarked for expansion projects, debt repayment and strategic investments.
The issue is being launched at a discount to the SEBI floor price of Rs 290.35 per share.The fresh issue will result in a dilution of around 9.9% of the post-issue equity capital, while the OFS component accounts for approximately 1.4%.Funds to support expansion and reduce debtJSW Infrastructure plans to utilise the proceeds from the fresh issue to finance capital expenditure through investments in its subsidiaries for ongoing development projects.
A portion of the funds will also be used to prepay or repay outstanding borrowings of the company and certain subsidiaries.The company has also earmarked part of the proceeds for strategic investments, inorganic growth opportunities through acquisitions, and general corporate purposes.The capital raise comes as JSW Infrastructure continues to expand its ports and logistics business through both organic capacity additions and acquisitions.QIP to close this weekThe institutional share sale was launched on Monday, June 22, with the book expected to close by Tuesday morning, although the company retains the option to close the issue earlier depending on investor demand.Pricing is expected around June 25, while listing approvals from the stock exchanges are targeted by June 30.
