JSW Infrastructure shares list at 20% premium over IPO price

JSW Infrastructure, a part of Sajjan Jindal-led JSW Group, made a solid debut on the stock exchanges on Tuesday, in an otherwise weak broader market. With this, the ports arm of JSW Group, became the third company of the conglomerate to get listed on the domestic bourses after JSW Steel and JSW Energy after a long gap of 13 years.

Shares of JSW Infrastructure were listed at ₹143 apiece on the BSE and the NSE, a premium of 20.16% against the issue price of ₹119. Post listing, the stock gained as much as 28.4% to hit a high of ₹152.8, while the market capitalisation rose to ₹31,920 crore. On the volume front, toa tal of 6.7 crore shares changed hands over the counter on the BSE and NSE.

The robust listing of JSW Infra was in line with expectations as the counter was commanding a premium of ₹25 in the grey market today, signaling IPO listing price at around ₹144 ( ₹119 + ₹25), up 21% from its initial public offering (IPO) price band of ₹113-119 apiece.

“The IPO was subscribed 37.37 times, which is a strong indication of investor interest. The company's fundamentals are also strong, with consistent revenue and profit growth in recent years. Additionally, the company is well-positioned to benefit from the growing Indian economy. Overall, the listing of JSW Infrastructure was a success. The company's strong fundamentals and good subscription levels were positive factors for this. Investors who participated in the IPO can hold on to their shares for the long term,” says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

The ₹2,800 crore IPO of JSW Infra was subscribed over 37.37% on the final day of bidding as it received bids for 509 crore equity shares as compared to issue size of 13.6 crore shares, as per the exchange data. The quota reserved for retail investors was booked over 10%, while the quota for qualified institutional buyers (QIB) was subscribed more than 57%. The portion set aside for non-institutional investors (NIIs) was booked nearly 16 times.

As per the offer document filed with SEBI, the company has reserved up to 75% of the issue for QIB, up to 15% for NII, and the remaining 10% for retail investors.

The lot size was 126 shares and in multiples thereof, which means the minimum and maximum investment amount for retail investors was ₹14,994 and ₹194,922, respectively. As per SEBI norms, a retail investor is limited to invest only up to ₹2 lakh.

The IPO of JSW Infra was completely a fresh issue of 23.53 crore shares. The company intends to use the capital raised from the public issue for repaying debts and expansion of Jaigarh Port, owned by its subsidiary, JSW Jaigarh Port. As per the offer document, it will use ₹880 crore for debt repayment, and ₹1,029.04 crore for expansion of Jaigarh Port. A part of the fund will also be used to invest in the subsidiary, JSW Mangalore Container, as part of the expansion of the Mangalore port franchise.

Ahead of the IPO, JSW Infra raised ₹1,260 crore through allotment of 10.58 crore shares to anchor investors at Rs 119 apiece, which saw participation from 11 mutual funds through a total of 28 schemes.

Established in 2006, JSW Infrastructure provides maritime-related services such as cargo handling, storage solutions, and logistics support services. Sajjan Jindal Family Trust owns 90.91% stake in the port-related infrastructure company, while JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex hold remaining 9.08% shares in the firm. Post listing, promoters’ stake in the company will come down to 85.62%.

On the financial front, the company posted a 126.8% growth in net profit at ₹749.5 crore for the financial year ended March 2023 (FY23) as compared to ₹330.44 crore in the last fiscal (FY22). The revenue from operations jumped 41.7% to ₹3,372.85 crore versus ₹2,378.74 crore in the year ago period.

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