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JSW Infra IPO Date & Details
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JSW Infra IPO |
JSW Infrastructure's IPO has opened for subscription today, 25 September 2023. JSW Infrastructure IPO will be open from 25th to 27th September. The price band of JSW Infrastructure IPO has been set between Rs 113 to Rs 119 per equity share of face value of ₹2 each. JSW Infra had raised Rs 1260 crore from anchor investors on 22 September.
In the public issue of JSW Infrastructure Limited IPO, 75% of the offer has been reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII) and 10% for Retail Investors.
The lot size of JSW Infra IPO is 126 equity shares and thereafter in multiples of 126 equity shares.
Adani Ports and Special Economic Zone Ltd. is already listed in the market from the same business sector in which JSW Infra operates. Adani Ports P/E ratio is 36.
JSW Infra IPO Review
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JSW Infra IPO Review |
New shares worth Rs 2,800 crore will be issued in JSW Infra's IPO. According to Red Herring Prospectus (RHP) the company plans to invest the proceeds from the issue in its wholly owned subsidiaries JSW Dharamtar Port Pvt Ltd and JSW Jaigarh Port Ltd. So that the outstanding loans can be paid in full or in part before time.
The company also plans to use this IPO amount to finance expansion/upgradation works in its subsidiary company JSW Jaigarh Port Limited. Such as expansion of LPG terminal, establishment of an electric sub-station and purchase and installation of a dredger.
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 are the book running lead managers to the Offer. KFin Technologies Ltd is the offer's registrar.
JSW Infra IPO Analysis
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JSW Infra IPO Analysis |
The company also has a proposal to build a port in Jatadhar, Odisha. This port will be built to serve the future steel plant in Odisha for JSW Steel Limited. Canara Bank Securities estimates that the expansion of many JSW group companies will be beneficial for them.
The company's revenue and EBIDTA have seen impressive growth of 41% and 42% in the last 2 years. Ebitda's margin remains stable at 53% despite a decline in FY22.
This issue is available at a P/EPS of 28.88x which seems fair as the company's revenue growth in the future is excellent with stable margins. In the opinion of Canara Bank Securities, you should subscribe to this issue for listing gains and long-term gains.
Choice Equity Broking Analysis
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Choice Equity Broking |
According to Choose Equity Broking, Ports require large amounts of capital to build and operate them. Additionally, the port's remaining concession life and utilization rates are critical success factors for port operators.
JSW Infrastructure Limited currently has a 60% capacity utilization of domestic freight traffic. The typical residual concession life is approximately 25 years, providing long-term visibility of revenue sources. Being a major customer of JSW Group, there appears to be certainty in long-term cargo volumes for JSWIL.
Additionally, JSWIL is well-positioned to participate in the port privatization drive of the government or any inorganic expansion.
Therefore, Choice Equity Broking also advises you to subscribe to this issue.
JSW Infra IPO GMP (green market premium) today
The gray market premium or GMP of JSW Infrastructure IPO is +18, similar to the previous trading session. This means that the share price of JSW Infra was trading at a premium of Rs 18 in the gray market on Monday.
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JSW Infra IPO GMP |
Considering the upper end of JSW Infrastructure Limited's IPO price band and the existing premium in the gray market, the estimated listing price of JSW Infra shares is Rs 137 per share, which is 15.13% higher than the IPO price of Rs 119.
Gray market premium indicates that investors are willing to pay more than the issue price.
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