JSW Infrastructure IPO, which opened for subscription on Monday, September 25, saw an overwhelming response from investors and was oversubscribed 37.37 times on the final day. Here are the key details:
JSW IPO Subscription Status:
Day 1: The IPO received a subscription of 43% on the first day.
Day 2: Subscription increased to 2.14 times on the second day, with the retail portion being subscribed 4.55 times, NII portion at 3.70 times, and QIB portion at 55%.
Final Day: On the third and final day, the IPO was subscribed 37.37 times. Retail investors showed strong interest with a subscription rate of 10.32 times, NII portion at 15.99 times, and QIB portion at 57.09 times.
Total Bids
The IPO received bids for a whopping 5,09,35,27,446 shares against the offered 13,62,83,186 shares.
JSW Infrastructure IPO Price and Lot Size
The price band for JSW Infrastructure IPO was set at ₹113 to ₹119 per equity share, with a lot size of 126 equity shares and multiples thereof.
Investment Purposes
The IPO comprised a fresh issuance of ₹2,800 crore worth of shares, with no offer for sale (OFS) component. The net proceeds from the offering will be invested in fully-owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd, to prepay or repay certain outstanding borrowings. Additionally, it will finance capital expenditure requirements, including expansion/upgradation works at Jaigarh Port.
Brokerage Recommendations
according to brokerage firm Nirmal Bang, JSW Infrastructure Ltd has demonstrated impressive growth rates in the port-related infrastructure sector. It enjoys a broad customer base and aims to provide fully integrated logistics solutions to its customers. The IPO is priced reasonably at 17.2x FY23 EBITDA making it an attractive option for investors.
Grey Market Premium
Grey market premium for JSW Infrastructure IPO was +19, indicating that shares were trading at a premium of ₹19 in the unofficial market. This suggested that investors were willing to pay more than the IPO price.
Estimated Listing Price
Considering the upper end of the price band and the grey market premium, the estimated listing price for JSW Infrastructure shares was ₹138, which is approximately 15.97% higher than the IPO price of ₹119.
Allocation for Investors
the IPO reserved 75% of shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors.
Book Running Lead Managers
The book running lead managers for the IPO included 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 acted as the offer’s registrar.
JSW Infrastructure IPO has generated significant investor interest, and its subscription numbers reflect confidence in the company’s growth prospects in the infrastructure sector.