JSW Infra IPO booked about 7x times on Day 3; bidding for the issue closes today

The JSW Infrastructure IPO saw a strong response during the third and final day of the bidding process. JSW Infrastructure is offering its shares in the range of Rs 113-119 apiece and with a lot size of 126 equity shares and its multiples thereafter. The Rs 2,800-crore issue by JSW Group is entirely a sale of fresh issue of about 23.53 crore equity shares. Bidding for the IPO began on Monday, September 25.

According to the data, the investors made bids for 95,23,65,834 equity shares, or 6.99 times, compared to the 13,62,83,186 equity shares offered for the subscription by 12.35 pm on Wednesday, September 27. The issue is open for subscription only for today, that is, Wednesday, September 27.

The allocation for retail investors was booked at 6.96 times, while the portion for non-institutional investors (NIIs) saw a subscription of 8.28 times. However, the portion reserved for qualified institutional bidders (QIBs) attracted 6.35 times bids at the same time.

JSW Infra provides maritime-related services, such as logistics services, cargo handling and storage solutions. The Sajjan Jindal-led JSW Infra develops and operates ports and port terminals under port concessions. JSW Infra was the second largest commercial port operator in the country in terms of cargo handling capacity for FY22.

Jm Financial, Axis Capital, Dam Capital Advisors, HSBC Securities & Capital Markets, ICICI Securities, Credit Suisse Securities (India), Kotak Mahindra Capital Company and SBI Capital Markets are managers to this issue. Kfin Technologies has been appointed as the registrar. JSW Infra raised Rs 1,260 crore from 65 anchor investors.

Majority of the brokerage firms, tracking the issue of JSW Infra, are positive on it. The company's IPO is valued at P/E of 19.4 times at Q1FY24 annualised EPS and at a P/E of 33 times at post IPO FY23 EPS is reasonable considering the strong fundamentals, said Ajcon Global Services in its IPO note.

"We recommend investors to 'subscribe' to the issue as it is the fastest growing port-related infrastructure and second largest commercial port operator in India; strategically located assets and industrial clusters; predictable revenues driven by long-term concessions;  committed long-term cargo and stable tariffs; diversified operations and demonstrated project development," it added.

The company also enjoys a strong parentage of JSW Group which has presence in various sectors in India and offers customer stickiness in the long term. The company also has plans to undertake various greenfield and brownfield expansions in the coming years which would prove beneficial for the business performance going forward, said Way2Wealth with a 'subscribe' rating.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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