JSW Infrastructure IPO Makes Waves with 20% Premium

by TNC

The stock leapt to ₹157.3 by the end of the day, a 32% rise from its issue price

JSW Infrastructure Limited, the maritime giant led by Sajjan Jindal, marked its debut on the markets — their stock premiered at a solid 20% premium, breathing life into Dalal Street, today.

JSW’s first ever Infra stock listed at ₹143 on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), sailing over its issue price of ₹119. This apart, its also the company’s first IPO in 13 long years, since JSW Energy in 2010.

The Grey Market’s Price Investor sentiments, understood from the grey market trends, points towards a strong opening. In the run-up to the listing, the grey market was buzzing with JSW Infrastructure shares a premium of ₹30-33 per share. This indicated a listing increase of 26-28%, a projection that did not stray far from the eventual opening. The premium had risen from ₹17-18 levels, a week ago, when the issue was first thrown open for bids. A Closer Look at the Numbers The IPO had an overwhelming response, i.e oversubscribed 37.37 times.

Qualified Institutional Bidders (QIBs) are particularly keen — subscribing to their quota a whopping 57.09 times, Non-Institutional Investors (NIIs) with: 15.99 times subscription, while retail investors trailed but still exceeded expectations with: 10.32 times subscription.

With JSW Infrastructure raising ₹2,800 crores through a sale of fresh equity shares, the offer’s price band was set between ₹113 and ₹119 per share, with the lot size fixed at 126 shares.

Managing this grand financial ballet were: JM Financial, Axis Capital, ICICI Securities, Dam Capital Advisors, Credit Suisse Securities (India), HSBC Securities & Capital Markets, Kotak Mahindra Capital, and SBI Capital Markets. Kfin Technologies performed as registrar for the IPO.

What is JSW’s Port Infrastructure all about?

This subsidiary of the JSW Group, as of FY23, is the second-largest commercial port operator in India providing maritime-related services including logistics, storage solutions, and cargo handling. Operating ports and port terminals under long-term concessions—spanning 30 to 50 years—it is positioned to capitalise on India’s growing economy.

How Will the Fresh Capital be Utilised?

According to the Red Herring Prospectus (RHP), the fresh capital will find its way into fully-owned subsidiaries JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd. To prepay or repay outstanding borrowings. Additionally, a part of the fund will also help in in the expansion of Jaigarh Port. This involves upgrading the LPG terminal, establishing an electric sub-station, and purchasing a new dredger.

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