- By Vaamanaa Sethi
- Mon, 25 Sep 2023 04:53 PM (IST)
- Source:JND
JSW Infrastructure initial public offering (IPO) was subscribed over 28% so far on its debut day on September 25, Monday.
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According to reports, every category of investors has actively engaged in the JSW Group company's first public issue in the past 13 years. Retail investors have shown particular interest, purchasing 1.08 times the allotted quota, while high net-worth individuals have acquired 31% of the shares.
Qualified institutional buyers (QIBs) have shown interest by subscribing to 0.13% of the shares allocated from the reserved portion, which constitutes 75% of the total offer size. An additional 15% of the issue has been set aside for high net-worth individuals, with the remaining 10% designated for retail investors.
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.
The company raised Rs 1,260 crore from anchor investors ike Goldman Sachs, Government of Singapore, HSBC, Monetary Authority of Singapore, Principal Global, The Master Trust Bank of Japan, Morgan Stanley, LIC Mutual Fund, SBI Mutual Fund, Sunil Singhania-owned Abakkus, ICICI Prudential Mutual Fund and HDFC Mutual Fund.
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 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%.
