JSW Infra lists on Oct 3: Will it match grey market premium after a healthy IPO?

JSW Infrastructure to debut on the bourses on October 3

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26 Aug, 2025 12:21

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JSW Infrastructure, the second-largest commercial port operator in India, is likely to debut on the bourses with 15-20 percent gains on October 3, given the strong subscription numbers reported by the IPO, healthy performance in the past financial years, and strong parentage support with diversified customer base, experts said.

The stock will be listing within the T+2 timeline (issue closing date + two working days) after completing allotment, share transfer and refunds process, instead of going for T+3 or T+6 timeline. Companies launching IPOs with effect from September 1 can voluntarily go for the new T+3 timeline which will be mandatory for all IPOs coming out with effect from December 1. This will be the second company after RR Kabel listing in the T+2 timeline.

The Rs 2,800-crore public issue of the JSW Group was subscribed 37.37 times during September 25-27, with major support from qualified institutional investors who bought 57.09 times the allotted quota. High net-worth individuals subscribed for 15.99 times and retail investors 10.32 times the portion set aside for them.

JSW Infrastructure is available at a P/E (price-to-earnings) of 28.9x on the FY23 financials post issue, with a market capitalisation of Rs 24,990 crore, while listed entity Adani Ports and Special Economic Zone traded at 33.8x.

"We expect the IPO to open at a premium of around 20 percent to the issuance price of Rs 119 per share," Parth Shah, research analyst at StoxBox said.

Since the company enjoys a strong parentage of JSW Group, which has a presence in various sectors in India and offers customer stickiness in the long term, Parth believes the IPO is reasonably priced.

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The port-related infrastructure company has a track record of sustained revenue, EBITDA (earnings before interest, tax, depreciation and amortisation) and PAT performance which recorded a CAGR of 41 percent, 42 percent and 62 percent, respectively, during FY21-23 period.

In the grey market, shares were available at a 20 percent premium over the upper price band (Rs 119), analysts on anonymity said. The grey market is an unofficial platform wherein the shares can be bought and sold till the listing.

"The subscription demand to the IPO is in line with our estimate due to strong fundamentals in the company and industry dynamics. Considering robust demand from all sets of investors and subdued market scenario, we expect a decent listing gain in the range 18-20 percent from its issue price of Rs 119 apiece," Prashanth Tapse, Research Analyst, Senior VP Research at Mehta Equities said.

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He believes the premium listing is justified on the back of reasonably IPO valuations when compared to peers which are trading in the range of around 28-30x, following a strong track record established by parent and well-positioned to benefit from the continued growth of the Indian economy.

Astha Jain, senior research analyst at Hem Securities expects JSW Infra to list at 15-20 percent premium to issue price. The company has predictable revenues driven by long-term concessions, committed long-term cargo and stable tariffs, she believes.

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JSW Infrastructure is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY21-FY23. It is also the second largest commercial port operator in India in terms of cargo handling capacity in FY23.