The Initial Public Offering (IPO) of JSW Infrastructure Limited, which opened for subscription, showed strong interest from investors on its first day. The subscription rate reached 43 percent, with significant participation from retail investors, according to available data on the stock exchanges.
Investors submitted bids for a total of 5,82,98,058 shares, compared to the offering of 13,62,83,186 equity shares in the IPO. The price range for the IPO was set at Rs 113-119 per share.
Retail investors played a substantial role, subscribing to the retail segment 1.38 times, while Non-Institutional Investors had a subscription rate of 0.60 times. The Qualified Institutional Buyer Portion witnessed a subscription rate of 0.03 times.
The subscription period for the IPO began on the opening day and is scheduled to conclude on September 27, 2023.
JSW Infrastructure Ltd had previously raised Rs 1,260 crore from anchor investors one day before the IPO opened.
Prominent foreign investors and domestic institutions, including Morgan Stanley, HSBC Global, Theleme, Pictet, SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Nippon Mutual Fund, participated in the anchor investor allotment.
Leading brokerage firms like Anand Rathi, Reliance Securities, Motilal Oswal, and Nirmal Bang have given a "Subscribe" rating to JSW Infrastructure Ltd. They have highlighted the company's strategically located assets, predictable revenues driven by long-term concessions, committed long-term cargo, and stable tariffs. JSW Infrastructure is the second-largest commercial port operator in India and is known for its rapid growth in port-related infrastructure.
Additionally, these brokerages have commended the company's track record of successful execution and operational capabilities, its expanding third-party business, diversified cargo mix, and the strong corporate lineage of the JSW Group, supported by a qualified and experienced management team.
However, they have also noted that the company's business carries risks associated with its high reliance on concession and license agreements from government and quasi-governmental organizations, as well as group companies.
The book-running lead managers for the IPO are 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. KFin Technologies Limited is the registrar of the offer.
The equity shares are proposed to be listed on both BSE and NSE.
