Clay Craft IPO price band 193-203: June 17 opening guide for Indian retail investors

IRM Energy Limited is a gas distribution company. The company is involved in developing, operating, and expanding of local natural gas distribution network. IRM Energy is a value-driven energy enterprise serving industrial, commercial, domestic, and automobile customers.

OBJECTS OF THE ISSUE

• Funding capital expenditure requirements for the development of the City Gas Distribution network.
• Repayment of all or a portion of certain outstanding borrowings availed by the Company.

KEY MANAGERIAL PERSONNEL

Maheswar Sahu

He is a Non-Executive Director of the Company and the Chairman of the Board of Directors of company. He had active involvement in handling various portfolios in Government including PSU management.

Karan Kausha

He is Chief Executive Officer (CEO) of the Company on July 13, 2020. He has been associated with the Company since September 5, 2016. He has 16 years of experience in the field of General Management, Strategy, Business Development and Project Management.

Harshal Anjaria

Harshal Anjaria was appointed as the Chief Financial Officer (CFO) of the Company on July 13, 2017. He has been associated with the Company since July 11, 2016. He has been associated with the Company since July 11, 2016.

Shikha Jain

Shikha Jain was appointed as the Company Secretary and Compliance Officer of the Company on January 4, 2020 and November 7, 2022, respectively. She has been associated with the Company since September 2, 2019. She has over 5 years of experience in corporate secretarial and other related compliances.

COMPANY PROFILE

• Company develop natural gas distribution projects in the geographical areas (“GAs”) for industrial, commercial, domestic and automobile customers.
• The company has marked its presence in Banaskantha District in the state of Gujarat, Fatehgarh Sahib in the state of Punjab, and Diu & Gir-Somnath in the Union Territory of Daman & Diu and the state of Gujarat.
• The company is fulfilling the natural gas requirements of 48172 domestic clients, 179 industrial units, and 248 commercial clients.
• As of September 2022, the company has 216 CNG gas stations across its operating geographical areas.
• The company has received an award of City Gas Distribution- Growing Company of the Year 2020 from the Federation of Indian Petroleum Industries.
• Company supply natural gas to two primary set of customer segments that are CNG and PNG.

COMPETITIVE STRENGTHS

• Exclusivity in CNG and PNG supply in the awarded geographical areas.
• Diverse customer portfolio and distribution network of CNG and PNG.
• Strong parentage, experienced board and management team and strong execution team.
• Technology adoption and digital initiatives for efficient and optimal operations.
• Connectivity to gas pipelines and establishing cost-effective gas sourcing arrangements.
• Strong financial performance with consistent growth and profitability supported by healthy operating efficiency and favourable regulations.

KEY STRATEGIES

• Expand company’s presence in existing and newer geographical areas through an improved captive distribution channel.
• Infrastructure roll-out for development and operation of the new licensed geographical areas of Namakkal & Tiruchirappalli, Tamil Nadu.
• Technology adoption to increase operational efficiency and enhance customer value.
• Business integration for transition into a complete energy solution provider.

KEY CONCERNS

• Transporting natural gas is hazardous and could result in accidents, which could adversely affect the company’s reputation, business, financial condition, results of operations, and cash flows.
• The Company typically requires 15-18 months to generate revenue in its geographical areas. Any further delay in realizing revenue may affect projections, results of operations, and cash flows.
• Its operations are restricted to defined geographical boundaries and the natural gas requirements in these regions may be affected by various factors.
• Companies require various licenses and approvals for undertaking their businesses.
• The company is heavily reliant on CNG and industrial PNG supply operations and any decrease in the sales may have an adverse effect on the business.
• The company is dependent on Government policies for the allocation of natural gas and the cost of gas supplied for CNG and domestic PNG customers.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

IRM has showcased consistent development of its gas distribution business in its key GAs. The company has a diverse customer portfolio and distribution network of CNG and PNG and a strong relationship with its customers. It has also reported strong financial performance in the last few years, except in FY23, when profit was impacted by a rise in gas prices due to geopolitical situations.

The company is still in the early stages of growth and may be impacted by unforeseen factors and other risks like limited geographic reach, government policies, delayed revenue generation, etc.

The issue is coming at a P/E valuation of 24.12x, which appears fairly priced. Thus, considering all these factors and the positive growth outlook, we will recommend a Subscribe rating to this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

ब्याज दरों के लंबे समय तक ऊंचे रहने की संभावनाओं के बीच अमेरिकी डॉलर 10 महीने की उचाई पर है और ट्रेजरी यील्ड में उछाल आया है जिसके कारण सोने के भाव 7 महीने के निचले स्तरों पर पहुंच गए है। दुनिया के सबसे बड़े सोना-समर्थित एक्सचेंज-ट्रेडेड फंड, एसपीडीआर गोल्ड ट्रस्ट की होल्डिंग्स चार साल से अधिक के निचले स्तर पर पहुंच गई है। जब ब्याज दरें अधिक हो जाती हैं, तो वे बांड जैसे अन्य ब्याज-युक्त निवेश को अधिक आकर्षक बना देते हैं, जिससे निवेशक ब्याज देने वाले निवेश की तरफ आकर्षित हुए है। उच्च ब्याज़ दरों की स्थिति में, सोने के विपरीत दिशा में चलने वाला डॉलर इंडेक्स में तेज़ी भी सोने के भाव में दबाव बना रही है। इस साल ब्याज दरों में एक बार और बढ़ोतरी होने के संकेत के साथ अगले साल उच्च ब्याज दरें क़ायम रहने के अनुमान के चलते कीमती धातुए निवेश के लिए कम आकर्षित हो गई है। अमेरिकी रोज़गार बाज़ार के बेहतर आकड़ो से लेबर इन्फ्लेशन बढ़ने का अनुमान है जिससे मुद्रास्फीति में बढ़ोतरी की सम्भवनाए बन रही है। बाजार ने दूसरी तिमाही के दौरान अमेरिकी अर्थव्यवस्था में मजबूत वृद्धि का संकेत देने वाले आंकड़ों पर प्रतिक्रिया दी है, जिससे ब्याज दरों में बढ़ोतरी की उम्मीद बढ़ गई है। पिछले सप्ताह दिसंबर वायदा सोने में 2.25 प्रतिशत की गिरावट के बाद कीमते 58050 रुपये प्रति दस ग्राम के स्तरों पर कारोबार करती रही। दिसंबर वायदा चांदी में 2 प्रतिशत की साप्ताहिक गिरावट के बाद कीमते 71800 रुपये प्रति किलो पर रही। इस सप्ताह अमेरिकी पैरोल के आंकड़े कीमती धातुओं के लिए महत्वपूर्ण रहेंगे।

‍तकनिकी विश्लेषण :

इस सप्ताह कीमती धातुओं के भाव में सुधार देखने को मिल सकता है। एमसीएक्स दिसंबर वायदा सोने में सपोर्ट 57500 रुपये पर है और रेजिस्टेंस 58800 रुपये पर है। दिसंबर वायदा चांदी में सपोर्ट 70500 रुपये पर है और रेजिस्टेंस 73500 रुपये पर है।

त्यौहार के सीजन से पहले कठोर मौद्रिक नीति के संकेतो से सोने और चांदी के भाव सस्ते हो गए है। और भारत में त्यौहार पर रीती रिवाज़ों के चलते पितृपक्ष के बाद सस्ते भाव होने के कारण इनकी हाज़िर मांग को अच्छा सपोर्ट देखने को मिल सकता है। भारत में पहली तिमाही में सोने की मांग में गिरावट देखने को मिली थी जबकि दूसरी तिमाही में मांग 4 प्रतिशत से बढ़ने का अनुमान है। हालांकि, बांड यील्ड में लगातार बढ़ोतरी होने के कारण गैरउपज वाली संपत्ति सोने से निवेशको ने छोटी अवधि के लिए दुरी बना रखी है। एसपीडीआर गोल्ड ट्रस्ट की सोने में होल्डिंग घट कर चार साल के निचले स्तरों पर पहुंच गई है। अमेरिका में आर्थिक मंदी का डर कम होने के बाद से ही निवेशक लम्बी अवधि के गवर्नमेंट बांड यह मान कर बेच रहे है की अर्थव्यवस्था ज्यादा नहीं सिकुड़ेगी। जबकि चीन, जो अमेरिकी ट्रेज़री का सबसे बड़ा होल्डर है, में आर्थिक मंदी रहने के कारण  ट्रेज़री में नई खरीद नहीं हो रही है और अमेरिकी डेब्ट की रेटिंग घटने के बाद फेड द्वारा भी बांड खरीद कम हुई है जिससे बांड यील्ड में बढ़ोतरी हुई है और कीमती धातुओं के भाव में दबाव बना हुआ है। रोज़गार बाजार और मुद्रास्फीति में स्थिरता ब्याज दरों को लम्बी अवधि के लिए उच्च स्तरों पर बनाये रख सकता है, हालांकि ग्लोबल अर्थव्यवस्था की सुस्त चाल और भूराजनीतिक मुद्दो के रहते सोने में लम्बी अवधि की तेज़ क़ायम रह सकती है। पिछले सप्ताह एमसीएक्स दिसंबर वायदा सोने में 2 प्रतिशत की गिरावट के बाद भाव 56500 रुपये प्रति दस ग्राम और चांदी में 4.5 प्रतिशत की गिरावट के बाद भाव 66800 रुपये प्रति किलो पर रहे।

तकनिकी विश्लेषण :‍

इस सप्ताह कीमती धातुओं के भाव सीमित दायरे में रह सकते है। एमसीएक्स दिसंबर वायदा सोने में सपोर्ट 55000 रुपये पर है और रेजिस्टेंस 58000 रुपये पर है। दिसंबर वायदा चांदी में सपोर्ट 62000 रुपये पर है और रेजिस्टेंस 70000 रुपये पर है।

Plaza Wires Limited is engaged in the business of manufacturing and selling wires, and selling and marketing LT aluminum cables and fastmoving electrical goods (“FMEG”) under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”. Its product mix comprises different type of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgear, PVC insulated electrical tape, and PVC conduit pipe & and accessories.

OBJECTS OF THE ISSUE

• Funding capital expenditure requirements of the Company. Funding the working capital requirements of the company.
• General corporate purposes.

Mr. Sanjay Gupta

Managing Director and one of the Promoters of the Company. He has been on the Board of Directors of the Company since March 12, 2008 and was appointed as the Managing Director and Chairman of the Company since March 10, 2022. He possesses approximately 26 years of experience in the electrical industry.

Mrs. Sonia Gupta

Whole-time Director and one of the Promoters of the Company. She has been on the Board of Director of the Company since March 21, 2008. She has approximately 26 years of work experience in the electrical industry. She has been instrumental in planning and formulating the overall business and commercial strategy and managing the financial planning of the Company.

Mr. Ajay Kumar Batla

Chief Financial Officer of the Company. He joined the Company on April 1, 2009. He has been appointed as CFO of the Company with effect from March 10, 2022. He participates in the key decisions of the Company and inter-alia develops financial and tax strategies and monitors budgeting of the Company.

Ms. Bhavika Kapil

Company Secretary and Compliance Officer of the Company. She was appointed as the Company Secretary and Compliance Officer of the Company with effect from March 10, 2022. She is responsible for handling secretarial compliances in the Company. She has a work experience of approximately 3.5 years as she was appointed in Fiscal 2022.

COMPANY PROFILE

• Plaza Wires Limited’s key products in the wires and cables segment include house wires, single & and multicore round flexible industrial cables, and industrial cables for submersible pumps & and motors up to 1.1kv grade.
• The company also provides other wires and cable products such as LT power control cables, TV dish antenna co-axial cables, telephone & and switchboard industrial cables, computer & LAN networking cables, close circuit television cables and solar cables, PVC insulated tape, and PVC conduit pipe & accessories, through third-party manufacturers.
• The Company sells its products through a variety of distribution channels depending on the geography and industry norms and trends. Its business model includes 1) Its dealer & and distribution network. 2) Securing government tenders, and 3) Direct sales to infrastructure projects
• The existing Manufacturing Unit is located at Baddi, Himachal Pradesh with an installed production capacity of 12,00,000 coils per annum.

COMPETITIVE STRENGTHS

• Product portfolio focused on various customer segments and markets. Distribution network.
• Management and dedicated employee base. Strategically located Manufacturing Facility.

KEY STRATEGIES

• Setting up the Proposed Manufacturing Unit to widen its product portfolio and increase its capacity. Enhance its position in the Wires and Cables Industry.
• Expand its dealer network in existing markets and enter new geographical markets. Strengthen its brand value.
• To use technology to further optimize its sales & and marketing operations.

KEY CONCERNS

• Inadequate or interrupted supply and price fluctuation of its raw materials and packaging materials could adversely affect its business.
• The company requires significant amounts of working capital.
• Its existing and proposed manufacturing facilities are concentrated in a single region.
• The industry segments in which it operates are fragmented, and it face competition from large players.
• It relies on certain third-party manufacturers for manufacturing some of its products.
• Pricing pressure from dealers and distributors may affect its gross margins and ability to increase its prices.
• The Company does not have any long-term or definitive agreements with its dealers or customers.

‍

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Plaza Wires operates in the wires and cables segment, and it also offers fast-moving electrical goods. The company is focused on various customer segments and has a large distribution network. Its financial performance has been stable.

However the company relies on certain third-party manufacturers for some of its products, and it also faces competition from large players in the industry. Also, it does not have any long-term contracts with its dealers and customers.

Though the IPO is coming at a fair P/E valuation of 21.95x, considering its small issue size, current market conditions, and other related risks, we will avoid this IPO.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.

Valiant Laboratories Limited is an Active Pharmaceutical Ingredient (“API”) / Bulk Drug manufacturing company with having focus on the manufacturing of Paracetamol. The Company manufactures Paracetamol in various grades such as IP/BP/EP/USP, as per the pharmacopeia requirements of its customers.

OBJECTS OF THE ISSUE

• Investment in its wholly-owned subsidiary VASPL for its capital expenditure and working capital requirements.
• General corporate purposes.

Velji Karamshi Gogri

Chairman, Independent and Non- Executive Director of the Company. He has experience of more than 45 years in the Chemical Industry involved in setting up and operating bulk drugs intermediates and fine chemicals manufacturing units and handling different chemical processes and equipment.

Santosh Shantilal Vora

Managing Director of the Company. He has experience of over 7 years in the chemical industry. He is one of the founding members of the Company and looks after the day- to-day affairs of the Company. He handles the responsibility of looking after new product development, infusion and upgradation of technology in operations and production process of the Company.

Paresh Shashikant Shah

Executive Director and Chief Financial Officer of the Company. He has been associated with the Company since 1985. He has experience of over four decades in the chemical industry. He is also one of the founding members of the Company and a director on the Board since incorporation.

Saloni Mehta

The Company Secretary & Compliance Officer of the Company. She is a qualified Company Secretary and is an associate member of the Institute of Company Secretaries of India. She has over two years of experience in the field of company law and SEBI Listing Regulations related compliance. She has been associated with the Company since November 30, 2021

COMPANY PROFILE

• Valiant Laboratories Limited was originally formed in year 1980 as a partnership firm under the name and style of “M/s. Bharat Chemicals” and gradually, commenced manufacturing of Paracetamol by late 1982.
• Its manufacturing unit is located in Palghar, Maharashtra, spread over 2,000 sq. mts. of land with an aggregate annual installed capacity of 9,000 MT per annum.
• Within its Manufacturing Facility located at Tarapur Industrial Area, Palghar, Maharashtra it also has an in-house R&D infrastructure.
• The Company, through its wholly-owned subsidiary, Valiant Advanced Sciences Private Limited intends to establish a greenfield project at Saykha Industrial Area, Bharuch, Gujarat. which shall venture into the manufacture of specialty chemicals and assist it in the backward integration process.

COMPETITIVE STRENGTHS

• Experienced promoters and strong management team.
• Strong financial performance.
• Reducing dependence on import of raw materials.
• Strategically located Manufacturing Facility.

KEY STRATEGIES

• Diversification into new chemistries and industry. Increase in market share.
• Improve operational efficiencies through backward integration of the Proposed Facility. Increase its penetration into international markets including regulated markets.

KEY CONCERNS

• It is a single-product manufacturing company and any changes to the paracetamol API industry or its product demand will adversely affect its business.
• The Company operates out of a single Manufacturing Facility. Any significant social, political, or economic disruption natural calamities, or civil disruptions in this region may impact its business. Subject to strict quality requirements, regular inspections, and audits by our customers and any failure to comply with quality standards may lead to cancellation of existing and future orders. limited number of suppliers for its raw materials which are highly concentrated in the western region of India.
• Dependent on a few customers for a major part of its revenues. The pharmaceutical industry is intensely competitive.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

Valiant Laboratories is a 40-year-old pharmaceutical ingredient manufacturing company with a main focus on paracetamol. Currently, it operates from its only manufacturing unit in Palgarh, Maharashtra; however, it is planning to establish a new project in Gujarat through its subsidiary. Its financial performance has been improving, and it has the benefit of experienced promoters.

But it is a single-product manufacturing company. Secondly, it is dependent on a limited number of suppliers as well as customers. Also, there is intense competition in this industry along with high regulations. The issue is coming at a P/E valuation of 15.7, which seems fair, but considering other risks and current market volatility, we will avoid this IPO.

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The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

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JSW Infrastructure Limited provides maritime-related services including cargo handling, storage solutions and logistics services. The company develop and operates ports and port terminals under Port Concessions. JSW Infrastructure Limited is part of the JSW Group. JSW Infrastructure is the 2nd largest commercial port operator in the country in terms of cargo handling capacity in Fiscal 2022.

OBJECTS OF THE ISSUE

• Payment of borrowings.
• Financing capital expenditure requirements. General corporate purposes.

Sajjan Jindal

Chairman and Non-Executive Director of the Company. He is the vice chairman of the World Steel Association and is also on the board of directors of JSW Energy Limited. He has over 36 years of experience in the manufacturing and steel industry.

Nirmal Kumar Jain

Vice Chairman and Independent Director of the Company. He joined Jindal Iron & Steel Company Limited in 1992 as general manager – finance. He has over 21 years of experience in the financial services sector.

Arun Sitaram Maheshwari

Joint Managing Director and Chief Executive Officer. He has previously been associated with Jindal Strips Limited, Jindal Iron & Steel Company Limited and Jindal Vijaynagar Steel Limited. He has over 30 years of experience in the areas of marketing, import (raw materials), corporate strategy and infrastructure.

Lalit Chandanmal Singhvi

Whole Time Director and Chief Financial Officer of the Company.He has over 21 years of experience in management and finance. He has been associated with our Company since January 15, 2015 as senior vice president – finance and commercial.

Kantilal Narandas Patel

Non-Executive Director of the Company. He has over 28 years of experience in the financial services sector and the steel industry. He was previously associated with JSW Holdings Limited as joint managing director and chief executive officer.

COMPANY PROFILE

• JSW Infrastructure’s operations have expanded from one Port Concession at Mormugao, Goa which was acquired by the JSW Group in 2002 and commenced operations in 2004, to nine Port Concessions as of June 30, 2023 across India.
• It is the fastest-growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled from Fiscal 2021 to Fiscal 2023.
• The company has a diversified presence across India with Non-Major Ports located in Maharashtra and port terminals located at Major Ports across the industrial regions of Goa and Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast. The company’s international presence includes 2 terminals at Fujairah and Dibba in the UAE
• The company’s ports and port terminals typically have long concession periods ranging between 30 to 50 years, providing long-term visibility of revenue streams.

COMPETITIVE STRENGTHS

• Fastest growing port-related infrastructure company and second largest commercial port operator in India.
• Strategically located assets at close proximity to JSW Group Customers (Related Parties) and industrial clusters supported by a multi-modal evacuation infrastructure.
• Strong financial metrics with a growing margin profile, return metrics, and growth. Diversified operations in terms of cargo profile, geography, and assets.
• Demonstrated project development, execution, and operational capabilities.
• Benefit from the strong corporate lineage of the JSW Group and a qualified and experienced management team.

KEY STRATEGIES

• Continue to pursue greenfield and brownfield expansions with a focus on Non-Major Ports Pursue acquisition opportunities in similar businesses.
• Increasing third-party customer base.
• Pursue opportunities in synergistic businesses to increase revenue diversification. Focus on building environment friendly and sustainable operations along with growth.

KEY CONCERNS

• A substantial portion of the volume of cargo handled by the company is dependent on a few types of cargo.
• It derives a substantial portion of its revenue from its top five customers Certain of its Subsidiaries have incurred losses in the past.
• It operates in a capital-intensive industry and its current and future expansion plans may require significant capital.
• The company's business operations are subject to a wide range of environmental and other regulations, and any changes to these regulations could increase the company's costs.

COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)

FINANCIALS (RESTATED CONSOLIDATED)

OUTLOOK & VALUATION

As a division of the JSW Group, JSW Infrastructure offers logistical, cargo handling, and other maritime-related services. The second-largest commercial port operator in India, the corporation has the fastest rate of growth in the infrastructure associated with ports.

The business's financial performance is quite strong, and both its sales and net worth are increasing. The ratio of debt to equity is 0.54, which is quite favorable. The issue size is about 2800 crore, and the IPO is full of fresh issues. last but not least, coming to the IPO valuation the issue is priced at a P/E valuation of about 28x, and EV/EBITDA is 15.17 which looks reasonable.

We will therefore subscribe to this IPO for listing benefits and for long terms due to valuation and current market sentiments.

DISCLAIMER:

The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.

CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000

Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241

Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.