JSW Infrastructure Limited has opened its initial public offering (IPO) for subscription, commencing on Monday, September 25th, and concluding on Wednesday, September 27th. The IPO, which raised ₹1,260 crore from anchor investors on September 22nd, offers equity shares with a price band ranging from ₹113 to ₹119 per share, each having a face value of ₹2.
The allocation of shares in the public issue is as follows: 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors. The lot size for the IPO is 126 equity shares, with multiples available thereafter.
Company Overview and Purpose of the IPO
JSW Infrastructure Limited is part of the JSW Group, one of India’s prominent business conglomerates. The company operates as the second-largest commercial port operator in India, boasting a substantial cargo handling capacity across nine ports, totaling 158.43 million metric tons per annum (MTPA) as of June 2023. JSW Infrastructure plans to utilize the net proceeds from the IPO to prepay or repay a portion of its outstanding borrowings and finance capital expenditure requirements, including expansion and upgradation of facilities.
Expert Opinions on JSW Infra IPO
Various financial experts and brokerage firms have expressed positive views on JSW Infrastructure’s IPO. Canara Bank Securities highlights the company’s rapid expansion in cargo handling capacity and cargo volumes between Fiscal 2021 and Fiscal 2023, emphasizing its growth prospects. They suggest that the expansion of JSW Group’s businesses will continue to benefit the company.
Motilal Oswal Financial Services favours JSW Infra IPO due to its dominant position among Indian port operators, large cargo profile, and diversified geographical footprint.
Reliance Securities emphasizes the growth potential of JSW Infrastructure in the context of the “Make in India” and “China+1” themes. They foresee steady growth in cargo traffic and long-term revenue from concessions and tariffs.
Investment Details and Grey Market Premium (GMP)
Investors should note that 75% of the IPO is reserved for QIBs, 15% for NIIs, and 10% for Retail Investors. Retail investors are required to invest a minimum of ₹14,994. The issue is managed by prominent book-running lead managers and has KFin Technologies Ltd as the registrar.
The company raised ₹1,260 crore from anchor investors before the IPO, with participation from mutual funds and foreign portfolio investors (FPIs). The grey market premium for JSW Infrastructure IPO currently stands at ₹18.
Considering the upper end of the price band and the grey market premium, the estimated listing price for JSW Infra shares is ₹137, representing a 15.13% premium over the IPO price of ₹119.
JSW Infrastructure’s IPO presents an opportunity for investors to participate in a rapidly expanding port-related infrastructure company within the JSW Group. With positive opinions from financial experts and a strong growth trajectory, the IPO has garnered significant interest. Investors should carefully assess their investment strategies and consider the company’s long-term growth prospects before making their decisions.