JSW Infrastructure’s IPO subscribed 37x as QIBs rush in

• QIB portion of the offer was subscribed 57 times on the last day.
• Retail and NII portion of the offer received a good response .
• This the first IPO from the Sajjan Jindal-led JSW group in 13 years.

JSW Infrastructure’s ₹2,800 crore initial public offer (IPO) was subscribed 37 times by the end of the last day of the offer.

Qualified institutional buyers (QIBs) rushed into bid for the offer on the last day as this portion was subscribed 57 times. Retail and non-institutional investor portions received good response.

The offer fixed a price band of ₹113-119 per equity share. This the first IPO from the Sajjan Jindal-led JSW group in 13 years.

The offer is a completely fresh issue and it intends to use the proceeds to pay loans, and use the rest towards capex to commission and expand projects, besides general corporate purposes.



Source: BSE

Long-term play say analysts

JSW Infra is India’s second largest private port operator after Adani Ports & SEZ. The company expanded from one port in Mormugao in 2002 to nine ports as of June, 2023. Its ports are present in Maharashtra, Goa, Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast.

It also operates two port terminals under operations & maintenance agreements in Fujairah Terminal and Dibba Port in the UAE. It also plans to expand its operations through brownfield and greenfield projects.

It also has a third party cargo business in India and witnessed a compounded annual growth rate of 65% between FY21 to FY23. The company’s revenues and profits have been steadily growing for the last three years. Its total debt as of June 2034 is at ₹4,228 crore.

“JSW Infra is well-positioned to benefit from the continued growth of the Indian economy. We think the company has diversified its cargo profile and geographical spread which have helped them to minimize the risk and ensure stability," said Prashanth Tapse, senior VP of research at Mehta Equities which recommends investors to ‘subscribe for long term’.

“We like the way the company is strategically focusing on expanding its footprint in non-major ports which would help them to broaden their operations to provide fully integrated logistics solutions,”’ Tapse adds.

An IPO note by Anand Rathi also says that JSW Infrastructure has strategically located assets at close proximity to JSW group customers and industrial clusters supported by a multi-modal evacuation infrastructure and predictable revenues.

“At the upper price band, the company is valuing at P/E of 27x, with a marketcap of ₹2,49,900 million post issue of equity shares and return on net worth of 18.8%. We believe that valuations of the company are fairly priced and recommend a ‘subscribe-long term’ rating to the IPO,” said Anand Rathi.