JSW Infra IPO subscribed 90% on Day 2 so far

The initial public offering (IPO) of JSW Infrastructure Ltd was subscribed 0.90 times on the second day of its bidding. The quota fixed for qualified institutional buyers (QIBs) was subscribed 0.03 times, with bids placed for 20,83,032 of the total 7,43,36,284 shares by 1:00 pm today. The JSW Infra IPO was subscribed 43% by Day 1.

The non-institutional investors' quota was subscribed 1.25 times, and bids were placed for 1,69,92,864 shares of the total 1,23,89,380 shares. The retail individual investors (RIIs) category was booked a maximum of 2.69 times, as bids were placed for a total of 6,66,22,878 shares of the total 2,47,78,761 shares on offer.

Of the total shares on offer at 13,62,83,186, the number of shares bid for stands at 11,51,86,176. The total bids received at the cut-off price stands at 5,96,00,772.

JSW Infra has a fixed price band of ₹113-119 per share for the IPO, which is Sajjan Jindal-led JSW Group’s first public issue in nearly 13 years. It is a fresh issue of 23.53 crore shares, which at the upper end of the price band will fetch ₹2,800 crore.

The allotment of shares will be finalised on October 3, 2023, while successful bidders will get the shares credited into their demat accounts on October 5. Applicants can bid for a minimum of 126 shares and in multiples thereof, which means the minimum and maximum investment amount for retail investors would be ₹14,994 and ₹194,922, respectively. As per SEBI norms, a retail investor is limited to investing only up to ₹2 lakh.

The company intends to use the capital raised from IPO proceeds mainly for repaying debts and expansion of the LPG Terminal Project.

Many analysts have recommended a "subscribe" rating to the IPO. Stockbroking platform Stoxbox says the company has a track record of sustained revenue/EBITDA/PAT performance, which grew at a CAGR of 41.2%/42.1%/62.3% in the FY2021-23 period. BP EQUITIES also issued a 'subscribe' rating, saying on the upper price band, the issue is valued at a P/E of 29.7x based on FY2023 earnings, which it feels is fairly valued.

Mehta equities have also recommended a “subscribe” rating to JSW Infra IPO, saying JSW Infra is well-positioned to benefit from the continued growth of the Indian economy.

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