The IPO for JSW Infra begins trading today and runs until September 27. Shares will cost between 113 and 119. The IPO attracted anchor investors who contributed 1,260 crore.
Date of JSW Infra IPO: Today, Monday, the 25th, subscriptions for the JSW Infrastructure IPO will begin, and they will remain available until Wednesday, the 27th. Each equity share in the JSW Infra IPO would be priced between 113 and 119 Indian rupees. On Friday, September 22nd, anchor investors contributed Rs 1,260 crore to the JSW Infra IPO.
Not less than 75% of the shares in the public issue of the JSW Infrastructure Limited IPO have been set aside for qualified institutional buyers (QIB), not more than 15% have been set aside for non-institutional investors (NII), and not more than 10% have been set aside for retail investors.
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The minimum lot size for the Open Trading A/C JSW Infra IPO is 126 equity shares, and subsequent lots must include a multiple of 126 equity shares.
The company’s listed competitor, Adani Ports and Special Economic Zone Ltd., has a P/E of 35.95.
Information Regarding the JSW Infrastructure Initial Public Offering
There is no offer for sale (OFS) component to the 2,800 crore worth of shares being issued as part of JSW Infra’s IPO.
The firm intends to use the net proceeds from the offering to prepay or repay all or a part of certain outstanding borrowings at its wholly owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd., as stated in the Red Herring Prospectus (RHP).
Investment in JSW Jaigarh Port Ltd., the company’s wholly owned subsidiary, will be used to meet capital expenditure needs in order to carry out planned expansion and upgrading works at Jaigarh Port, such as the enlargement of the LPG terminal, the construction of an electric sub-station, and the acquisition and installation of a dredger.
HSBC Securities and Capital Markets (India) Private Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Company Ltd, SBI Capital Market Ltd, and JM Financial Ltd are the book-running lead managers for the offer. The offer is being registered by KFin Technologies Ltd.
Additionally, the JSW Infrastructure IPO will begin next week. 10-point GMP, review, and other specifics
The Analysis of JSW Infra’s Initial Public Offering
Canara Bank Securities identified JSW Infrastructure Limited as the fastest-growing port-related infrastructure firm based on installed cargo handling capacity and cargo volumes handled between Fiscal 2021 and Fiscal 2023. They propose constructing a port at Jatadhar to supply JSW Steel Limited’s planned steel mill in Odisha. They believe that the growth of the several businesses that make up the JSW Group will continue to be to their benefit.
With a compound annual growth rate (CAGR) of 41% for sales and 42% for EBIDTA, the company is doing well. Although EBIDTA margins decreased in FY2022, they stayed the same at 53%. The issue’s P/EPS of 28.88x seems fair given the company’s great future revenue visibility and stable margins. According to the brokerage’s research, subscribers stand to benefit from the issue’s listing in the long run, so they should consider doing so.
Based on its trailing twelve-month (TTM) earnings per share of 4.1, Choice Equity Broking estimates that JSW Infrastructure Limited is asking for a TTM P/E multiple of 28.7x (at the high end of its pricing range).
The development and maintenance of port infrastructure calls for hefty financial outlays. The remaining concession life and utilisation rates of the port are other important issues for port operators to consider. With a normal residual concession period of roughly 25 years, JSW Infrastructure Limited has long-term visibility of income streams and domestic goods handling capacity utilisation of about 60%.
Long-term cargo volumes for JSWIL seem to be stable, in part because JSW Group firms are important clients. In addition, JSWIL is prepared to take part in the government’s port privatisation push or any inorganic growth thanks to its post-IPO lean financial sheet. “Because of this, we are giving the issue a ‘Subscribe’ rating,” the broker said.
Motilal Oswal Financial Services, a stockbroker, recommends the JSW Infra IPO because of the company’s huge cargo profile, varied geographic reach, and dominant position among Indian port operators.
On a fully diluted and annualised basis, the issue is valued at 19 times earnings for the first quarter of fiscal year 24. We think the government’s emphasis on port expansion, the lack of significant competition, and JSW’s solid parentage might all be in the company’s favour. As a result, the brokerage strongly suggests using Subscribe.
According to Reliance Securities, the Make in India and China+1 themes will drive better development plans, and the Indian economy is on a rocketing growth curve that can handle more EXIM transactions. Cargo volume climbed 1.7% in FY23, and growth of 3-6% is forecasted for major ports. Predictable revenue from long-term concessions and stable tariffs will underpin this development from FY24 through FY28.
“Over the last several years, JSW Infrastructure has shown its ability to execute, and the company stands to gain from its solid corporate lineage, professional staff, capacity development, and diversification into related businesses, all of which will serve to boost revenue diversity and generate value for the company’s shareholders. That’s why we’re advising our clients to ‘Subscribe’ to the problem,” the broker said.
Also this week: 16 fresh issues and 8 listings to keep the main market bustling, from the JSW Infra IPO to the Arabian Petroleum IPO.
Today is the general market opening for the JSW Infra IPO.
The GMP for the JSW Infrastructure IPO today, also known as the grey market premium, is +18, which is consistent with the prior trading session. According to topsharebrokers.com, the JSW Infra share price was 18% over its official closing price in the grey market on Monday.
Given the present premium in the grey market and the top end of the JSW Infrastructure Limited IPO pricing range, the predicted listing price of JSW Infra shares is 137 each, which is 15.13% more than the IPO price of 119.
To investors, a “grey market premium” means they are willing to pay more than the issue price.
