JSW Infrastructure Limited's Initial Public Offering (IPO) has seen a surge in demand, particularly from retail investors, as the second day of the bidding process unfolds. The IPO, which had a subscription rate of 43 percent on the first day, has witnessed an overwhelming response.
Data available from stock exchanges reveals that the IPO has received bids for more than 29 crore shares, surpassing the offering of 13.6 crore equity shares, resulting in an oversubscription rate of 2.13 times. Remarkably, retail investors have exhibited the highest level of interest, oversubscribing their segment by an impressive 4.78 times. The Non-Institutional Investor (NII) category has also shown substantial demand, with a subscription rate of 3.97 times.
Conversely, the Qualified Institutional Buyers (QIBs) section had a comparatively lower subscription rate at 0.58 times.
The grey market premium (GMP) for the JSW Infrastructure IPO has remained stable at +18, mirroring the trend from previous days.
It is noteworthy that the price band for the IPO was set at Rs 113-119. The subscription window for the IPO opened on the previous day and is slated to conclude on Wednesday, September 27.
Prominent brokerage firms, including Anand Rathi, Reliance Securities, Motilal Oswal, and Nirmal Bang, have assigned a "Subscribe" rating to JSW Infrastructure Ltd. These firms have highlighted various strengths of the company, such as strategically positioned assets, predictable revenues stemming from long-term concessions, commitment to long-term cargo, and stable tariffs.
JSW Infrastructure holds the distinction of being the second-largest commercial port operator in India and is the fastest-growing company in port-related infrastructure.
Brokerages have also acknowledged the company's strong track record of execution and operational capabilities, its endeavors to expand the third-party business, its diversified cargo mix, and the robust corporate lineage of the JSW Group, supported by a well-qualified and experienced management team.
However, these assessments also underline certain business risks, including the company's substantial reliance on concession and license agreements from government and quasi-governmental organizations and group entities.
The IPO is being managed by book-running lead managers, including 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 serving as the registrar to the offer.
The equity shares offered through this IPO are scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 6, 2023.
