The Initial Public Offering of JSW Infrastructure Limited has received a subscription of 43% on the first day of the bidding process, led by the retail investors.
The issue received bids of 5,82,98,058 shares against the offered 13,62,83,186 equity shares, at a price band of ?113-119, according to the data available on the stock exchanges.
Retail Portion was subscribed 1.38 times followed by Non-Institutional Investors by 0.60 times and Qualified Institutional Buyer Portion by 0.03 times. The issue kicked off for subscription on Monday, September 25, 2023 and will close on Wednesday, September 27, 2023.
A day prior to the opening of the issue, JSW Infrastructure Ltd had raised Rs 1260 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were Morgan Stanely, HSBC Global, Theleme, Pictet, SBI MF, ICICI Pru MF, HDFC MF, Nippon MF, Birla MF, UTI MF, LIC MF, Franklin Templeton MF, Tata MF, Sundaram MF, SBI Life, Birla Life, Bajaj Allianz Life, Max Life, SBI General Insurance, Shamyak Investment (Enam group firm led by Akash Bhansali), Premji Investment, Madhu Kela led MK Ventures, Sunil Singhania led Abakkus etc.
Leading brokerage firms including Anand Rathi, Reliance Securities, Motilal Oswal and Nirmal Bang have given a "Subscribe" rating for JSW Infrastructure Ltd, citing its strategically located assets and predictable revenues driven by long-term concessions, committed long term cargo and stable tariffs. JSW is the fastest growing port-related infrastructure company and second largest commercial port operator in India.
The broking houses are also positive regarding the company's proven track record of execution and operational capabilities, growing third party business, diversification of cargo mix and strong corporate lineage of the JSW Group backed by qualified & experienced management team.
However, the broking houses noted the company's high dependency on concession and license agreements from government and quasi-governmental organizations and group companies for business as key risks.
JM Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, DAM Capital Advisors Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.