• By Vaamanaa Sethi
  • Wed, 27 Sep 2023 05:17 PM (IST)
  • Source:JND
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JSW Infrastructure initial public offering (IPO) has been booked over 39.96 times on the final day of bidding on September 27. JSW Infra IPO was open for bidding on September 25.

The retail portion was subscribed over 9.91 times of the allotted quota, meanwhile, high networth individuals were subscribed 15.94 times. Qualified institutional buyers (QIB) bid 56.49 times their reserved portion which is 75 percent of the issue size on the final day.

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According to reports, the quota for QIB was reduced after anchor investors bought Rs 1,260 crore worth of shares, which is 60% of the total QIB book, on September 22. 

HSBC, Morgan Stanley, ICICI Prudential Mutual Fund, Government of Singapore, LIC Mutual Fund, SBI Mutual Fund, Fullerton, The Master Trust Bank of Japan, Monetary Authority of Singapore, Goldman Sachs, Sunil Singhania-owned Abakkus, and HDFC Mutual Fund were amongst the marquee names who participated in the anchor book.

Sajjan Jindal-led port business is the first IPO by JSW Group in nearly 13 years and is a complete fresh issue worth Rs 2,800 crore. It has set the price band for its initial public offering (IPO) at Rs 113 - Rs 119 per share.

JSW infrastructure is India’s second largest port operator in terms of cargo handling capacity as of FY23. The installed cargo handling capacity of the company stood at 158.43 million tonnes per annum for multi-commodity cargo, including dry bulk, break bulk, liquid bulk, gases, and containers.

The market capitalisation post issue, at the upper price band, will be Rs 24,990 crore, while peer Adani Ports and Special Economic Zone has a market cap of Rs 1,77,243 crore on September 26's closing.

The company plans to utilize the net proceeds towards repayment of the debt, financing capital expenditure, and other general corporate purposes. JM Financial, Axis Capital, Credit Suisse Securities, DAM Capital Advisors, HSBC Securities, ICICI Securities, Kotak Mahindra Capital, and SBI Capital are the bankers on the issue. KFin Technologies is the registrar.

The offer is being made through a book-building process where 75% of the issue is reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

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The company saw its revenue from operations jump 7% year-on-year (YoY) to Rs 878 crore, while net profit grew 68% to Rs 322 crore, for the three months ended June 2023. 

Its installed cargo handling capacity in India grew at a CAGR of 15.27% from FY21-23. During the same period, the cargo volumes handled in India jumped at a CAGR of 42.76%.