JSW Infrastructure Initial Public Offering: Today, September 25, is the opening day for subscriptions.
Subscriptions will end on September 27. The JSW Infrastructure IPO pricing range has been established as being between 113 and 119 rupees per equity share. Prices for each lot are 2 euros. On Friday, September 22, the anchor investors in the JSW Infrastructure IPO contributed Rs. 1,260 crore.
JSW Infrastructure Limited has set aside no less than 75% of the issuance for qualified institutional buyers (QIBs), no more than 15% for non-institutional investors (NIIs), and no more than 10% for the part set aside for retail investors.
Following that, in multiples of 126 equity shares, the JSW Infrastructure IPO lot size will be sold.
A listed industry peer, Adani Ports and Special Economic Zone Limited has a P/E ratio of 35.95.
JSW Infrastructure’s initial public offering (IPO) had a 13% subscription status as of 12:06 IST, with 55% of the retail component subscribed.
Details of the JSW Infrastructure IPO:
include a fresh issue of shares valued at 2,800 crores, and there is no offer for sale (OFS) component available for purchase. According to the Red Herring Prospectus (RHP), the business intends to invest its net proceeds in JSW Dharamtar Port Private Limited and JSW Jaigarh Port Limited, two of its wholly-owned subsidiaries, to enable the payment or repayment of all or part of their current debt.
The business also plans to finance the capital costs associated with the planned improvements and expansions at its Jaigarh Port, including the enlargement of the LPJ Terminal, the construction of an electrical substation, and the acquisition and installation of dredges.
The lead managers for the offer are ICICI Securities Limited, JM Financial Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, DM Capital Advisors Limited, HSBC Securities and Capital Markets (India) Private Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited. KFin Technologies Ltd. is the offer’s registrar.
JSW Infrastructure IPO Review:
Kenra Bank Securities said in its analysis that JSW Infrastructure Limited has a history of success over the past few years and is a business that is quickly growing its cargo handling capacity and cargo volumes related to port operations. They claim that JSW Steel Limited wants to build a steel factory in Odisha, complete with a port at Jatadhari that would serve the new steel facility. According to them, the JSW Group’s expansion of various enterprises could be advantageous for them.
During the period spanning from FY2021 to FY2023, the firm’s revenue witnessed a compounded annual growth rate (CAGR) of 41%, while its EBITDA demonstrated an impressive CAGR of 42%.The EBITDA margin, although dropped in FY2022, is still steady at 53%. The issue is offered at a P/E ratio of 28.88x, which seems fair given the company’s strong sales visibility and consistent margins in the long term. Therefore, we advise subscribing for long-term and listing gains, according to the brokerage’s research.
Choice Equity Broking considers JSW Infrastructure’s TTM P/E multiple of 28.7x at the upper price band (at about 4.1 per share) to be reasonable and in line with that of its listed competitors. Major investments are needed to build and maintain ports’ essential infrastructure. Additionally, the port’s remaining functional life and usage rates are important success factors for port operators. With a domestic cargo handling capacity utilization of about 60% and an average asset residual life of about 25 years, JSW Infrastructure Limited has long-term revenue visibility from revenue streams.
Motilal Oswal Financial Services, as a brokerage firm, advocates for the JSW Infrastructure IPO due to the company’s prominent standing within the realm of leading Indian port operators, its significant cargo portfolio, and its extensive geographical reach. Through its financial and operational assistance from the corporate pedigree, as well as by expanding its capacity expansion and diversification in a related business, the company’s revenue diversification will increase from the stable revenue diversification, according to the brokerage.
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The Make in India and China +1 themes, according to Reliance Securities, will continue to strengthen the growth strategies, and the rapid growth trajectory of the Indian economy promotes greater EXIM trade. In the fiscal year 2013, cargo traffic increased by 1.7%, and it is predicted that major ports will see 3-6% growth over the next few years. Long-term contracts and consistent tariffs obtained by projected revenue from FY24–28 will maintain this stable growth.
The Grey Market Premium (GMP) for the JSW Infrastructure IPO stands at 18, mirroring its value from the preceding trading session. This demonstrates that, according to leading stock brokers, JSW Infrastructure shares were trading at a premium of $18 on Monday on the grey market, reflecting investors’ readiness to pay more than the issue price.