JSW Infra lists at 20% premium in-line with grey market expectations

JSW Infra lists at 20% premium in-line with grey market expectations
  • The stock listed at ₹143 per share as compared to its IPO price of ₹119.
  • The market cap of the company is ₹32,476.52 crore according to BSE.
  • It intends to use the proceeds to pay loans and capex besides general corporate purposes.

JSW Infra listed at a 20% premium of ₹143 per share versus an issue price of ₹119/share on the NSE. However, at the time of publishing, the stock had run up up 29% trading at ₹153 a share. The grey market was expecting 25% listing gains from the stock.

The market cap of the company is ₹32,476.52 crore according to Bombay Stock Exchange. This is the first listing from the JSW Group in 13 years after JSW Energy in 2010.

Apart from Yatra Online, most other stocks that debuted on the exchanges recently have given positive listing gains. Here are the listing gains of the last few market debuts.

Here are the listing gains of the last few market debuts:


CompanyListing gains
Signature Global18%
Sai Silks Kalamandir 10%
EMS Ltd32.58%
R R Kabel15.6%
Jupiter Life Line Hospitals46%
Rishabh Instruments0.18%
Ratnaveer Precision Engineering37%
Vishnu Prakash R Punglia47%
Pyramid Technoplast12%
TVS Supply Chain5%
Concord Biotech21%

JSW Infra IPO was subscribed 37X on QIB rush. The IPO which is the first from the steel to power conglomerate in 13 years, was subscribed 37 times over the shares on offer.

The Qualified institutional buyers (QIBs) rushed into bid for the offer on the last day as this portion was subscribed 57 times. Retail and non-institutional investor portions received good response.

The offer, unlike most others, is a completely fresh issue. The second largest private port operator in the country intends to use the proceeds to pay loans. The rest will be used towards capex to commission and expand projects, besides general corporate purposes.

The offer fixed a price band of ₹113-119 per equity share.

Long-term play say analysts

The company expanded from one port in Mormugao in 2002 to nine ports as of June, 2023. Its ports are present in Maharashtra, Goa, Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast.

It also operates two port terminals under operations & maintenance agreements in Fujairah Terminal and Dibba Port in the UAE. It also plans to expand its operations through brownfield and greenfield projects.

It also has a third party cargo business in India and witnessed a compounded annual growth rate of 65% between FY21 to FY23. The company’s revenues and profits have been steadily growing for the last three years. Its total debt as of June 2034 is at ₹4,228 crore.

“JSW Infra is well-positioned to benefit from the continued growth of the Indian economy. We think the company has diversified its cargo profile and geographical spread which have helped them to minimise the risk and ensure stability,said Prashanth Tapse, senior VP of research at Mehta Equities which recommends investors to ‘subscribe for long term’.

“We like the way the company is strategically focusing on expanding its footprint in non-major ports which would help them to broaden their operations to provide fully integrated logistics solutions,”’ Tapse adds.

An IPO note by Anand Rathi also says that JSW Infrastructure has strategically located assets at close proximity to JSW group customers and industrial clusters supported by a multi-modal evacuation infrastructure and predictable revenues.

“At the upper price band, the company is valuing at P/E of 27x, with a marketcap of ₹2,49,900 million post issue of equity shares and return on net worth of 18.8%. We believe that valuations of the company are fairly priced and recommend a ‘subscribe-long term’ rating to the IPO,” said Anand Rathi.