JSW Infra makes strong debut; extends gain to zoom 32% over issue price

JSW Infrastructure made a strong market debut Tuesday with its shares listing at Rs 143 on the NSE, a 20 per cent premium over the issue price of Rs 119.

Post listing, the stock moved higher to Rs 157, quoting 32 per cent above its issue price on the NSE. A combined 63 million equity shares changed hands on the NSE and BSE, till 10:03 am.

JSW Infra IPO received overwhelming response from investors, with the issue being oversubscribed 37.37 times. Qualified Institutional Buyers (QIB) portion was subscribed 60.12 times, non institutional investors (NII) portion was subscribed 15.99 times and retail investor’s portion was subscribed 10.87 times.

JSW Infra is the second largest commercial port operator in the country in terms of cargo handling capacity in fiscal 2022.

The company’s operations have expanded from one port concession at Mormugao, Goa that was acquired by the JSW Group in 2002, to nine port concessions across India. The Group’s international presence includes 2 terminals at Fujairah and Dibba in the UAE.

JSW Infra provides maritime related services including, cargo handling, storage solutions, logistics services and other value-added services to its customers, and are evolving into an end-to-end logistics solutions provider.

As on June 30, 2023, the company's installed cargo handling capacity was 158.43 million tonnes (MT) per annum, which compares to roughly a quarter of Adani Ports and SEZ's capacity of 602 MT, its only listed, comparable peer and the larget commerical port operator.

Analysts said JSW Infra’s strong parentage is a positive as they flagged its dependence on group businesses.

Motilal Oswal Financial Services likes JSW Infra given its dominant position among the port operators in India, along with broad cargo profile and diversified geographical presence.

The brokerage firm believes JSW infra could benefit from the government focus on port development, limited competition and strong parentage.

"The company's fundamentals are strong, with consistent revenue and profit growth in recent years. Additionally, the company is well-positioned to benefit from the growing Indian economy. Overall, the listing of JSW Infrastructure was a success.

Investors who participated in the IPO can hold their shares for the long term, " said Shivani Nyati, Head of Wealth, Swastika Investmart.

In an IPO note, those at Nirmal Bang said that JSW Infra has a diversified customer base to include third-party customers across geographies by leveraging locational advantage and maximizing asset. Hence it is able to generate higher EBITDA margins and ROCE compared to Adani Ports.