Infrastructure News

JSW Infra IPO subscribed nearly 38x on the final day, Infra News, ET Infra

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<p>Representative image</p>
Representative image

MUMBAI: The IPO of JSW Infrastructure — India’s second largest ports operator in terms of cargo handling capacity — received a strong response from all sections of investors, resulting in a subscription of 37.8 times on the final day of the three-day share sale period.

Investors bid for over 509 crore shares against the 13.6 crore shares on offer, exchange data showed. The IPO, which is entirely a fresh issue of shares worth Rs 2,800 crore, sold shares carrying a face value of Rs 2 in the range of Rs 113-119 apiece.

At the upper end of the price band, JSW is looking at a market value of Rs 25,000 crore. The categories reserved for qualified institutional buyers (QIBs), non-institutional investors and retail participants were subscribed 57 times, 16 times and 10.3 times respectively, data showed.

Billionaire Sajjan Jindal and family will own 86% of JSW, down from the current 96%, after the IPO. A day before the IPO opened to retail investors, JSW raised Rs 1,260 crore from more than two dozen anchor investors including domestic mutual funds. Of the Rs 1,260 crore it raised, Rs 495 crore — about 39% of the total anchor book size — came in from domestic mutual funds.

JSW will use the IPO proceeds to fund capacity expansion and to pare debt.

The ports operator will be the third company from the $23-billion Sajjan Jindal Group to be listed on the stock exchanges after JSW Energy and JSW Steel. Plans are afoot to take JSW Cement and JSW Paints public, too. JSW Cement could launch a Rs 3,500 crore-4,000 crore IPO next year, while the JSW Paints IPO will take some time, people familiar with the development said.

  • Published On Sep 28, 2023 at 12:19 PM IST

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