JSW Infrastructure IPO Debuts with a Bang, Soaring 20.2% Above Issue Price

JSW Infrastructure IPO Debuts with a Bang, Soaring 20.2% Above Issue Price Image/Mint

VoM News Desk | October 3, 2023 | 12:29 PM IST | Breaking News | Follow on Google News

JSW Infrastructure IPO Debuts with a Bang, Soaring 20.2% Above Issue Price

JSW Infrastructure IPO Debuts with a Bang, Soaring 20.2% Above Issue Price

JSW Infrastructure, a subsidiary of JSW Group, made a grand entrance on the stock market as its IPO shares debuted at a significant premium on Tuesday. Both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) witnessed the listing of JSW Infrastructure shares at ₹143 per share, marking a remarkable 20.2% increase over the issue price of ₹119. This impressive start indicates strong investor confidence and enthusiasm for the company.

JSW Infra IPO Overview

JSW Infrastructure’s Initial Public Offering (IPO) opened for subscription from September 25th to September 27th, 2023. The IPO’s price band was set between ₹113 and ₹119 per share. The allocation of shares in the public issue was as follows: a minimum of 75% was reserved for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and a maximum of 10% for Retail Investors.

Utilizing IPO Proceeds for Growth

The IPO, comprising a fresh issuance of ₹2,800 crore worth of shares, did not include an Offer for Sale (OFS) component. According to the Red Herring Prospectus (RHP), JSW Infrastructure plans to utilize the net proceeds from the IPO to invest in its fully owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd. This strategic move aims to prepay or repay a significant portion of their outstanding borrowings.

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Furthermore, the company intends to finance its capital expenditure requirements through investments in JSW Jaigarh Port Ltd, focusing on expansion and upgrading projects at Jaigarh Port. These projects encompass expanding the LPG terminal, establishing an electric sub-station, and purchasing and installing a dredger.

Key Players in the Offering

The IPO of JSW Infrastructure Limited is being managed by several prominent financial institutions, including JM Financial Ltd, Axis Capital Ltd, Credit Suisse Securities (India) Private Ltd, DAM Capital Advisors Ltd, HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Market Ltd. KFin Technologies Ltd is serving as the offer’s registrar, ensuring a smooth and efficient process.

JSW Infra IPO GMP Soars

In the grey market, the Grey Market Premium (GMP) for JSW Infrastructure IPO surged to +31, maintaining its upward trend from the previous two trading sessions. This indicates strong investor confidence and a willingness to pay a premium for JSW Infra shares even before their official listing.

Considering the upper end of the IPO price band and the current GMP, the estimated listing price for JSW Infrastructure shares stands at ₹150 per share. This represents a remarkable 26.05% increase over the IPO issue price of ₹119, underlining the significant interest and optimism surrounding the company’s future prospects.

VoM News Desk

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