JSW Infrastructure IPO Shares Makes Stellar Debut: JSW Infra Shares List At 20% Premium; Should You Buy?

JSW Infrastructure IPO shares made a strong market debut on Tuesday (October 3). JSW Infrastructure stock at Rs 143, up 20% compared to the IPO price of Rs 119 per share. Given the strong performance of JSW Infrastructure, it is considered wise to hold the shares for the long term. Shares of JSW Infrastructure were listed at Rs 143 on both NSE and BSE on October 3, up 20% compared to the issue price of Rs 119 per share.

The stock can be a buy at the moment given the strong fundamentals of the company in addition to today's strong market debut.

Ahead of the listing, JSW Infrastructure's grey market premium (GMP) surged to Rs 31.

The Rs 2,800-crore initial public offering (IPO) of JSW Infra is the JSW group's first IPO in the last 13 years and received a good response from investors. The issue was subscribed 37.37 times, with major support from qualified institutional investors who purchased 57.09 times the allotted quota. High net-worth individuals (HNIs) subscribed 15.99 times, while retail investors subscribed 10.32 times the portion reserved for them.

The IPO of JSW Infrastructure ed for bidding on September 25 and ended on September 27. The IPO price band was set in between Rs 113 to Rs 119 per share with a lot size of 126 shares. The Sajjan Jindal-led company raised the entire sum through a sale of fresh issue equity shares.

JM Financial, Axis Capital, Credit Suisse Securities (India), DAM Capital Advisors, HSBC Securities and Capital Markets (India), ICICI Securities, Kotak Mahindra Capital Company, and SBI Capital Markets were appointed as the managers of the offer.

The company's listed industry peers include Adani Ports and Special Economic Zone Ltd (APSEZ), which has a P/E ratio of 35.95.
According to market observers, in today's early morning shares of JSW Infrastructure Limited were available at a premium of Rs 25 in the grey market, suggesting IPO the JSW Infrastructure IPO listing price at around Rs 144 ( Rs 119 + Rs 25), up 21% from JSW Infrastructure IPO price band.

JSW Infrastructure is the 2nd largest commercial port operator in the country in terms of cargo handling capacity in Fiscal 2022. The company has expanded its operations from one Port Concession at Mormugao, Goa which was acquired by the JSW Group in 2002, to nine Port Concessions as of December 31, 2022, across India. The Firm's cargo handling capacity in India grew at a CAGR of 22.35% from 102.50 MTPA as of March 31, 2020, to 153.43 MTPA as of March 31, 2022.