JSW Infrastructure IPO: Debuts in style, lists at 20% premium to issue price

This also marked the first IPO from the JSW Group in 13 years after JSW Energy listed in 2010.

Commercial port operator JSW Infrastructure made a strong debut on the exchanges on October 3, just two days after the closure of its public offer, and listed at a premium of 20 percent to its issue price. The stock listed at Rs 143 on both the NSE and BSE, against the issue price of Rs 119.  At 11:50 AM, the stock jumped 32% to Rs 157.3 over the issue price on NSE and BSE.

This also marked the first IPO from the JSW Group in 13 years after JSW Energy listed in 2010.

The robust listing of the country's second largest commercial port operator was delivered on analysts' expectations of a strong debut on the back of a healthy response to its public offer, reasonable valuations, strong track record established by parent and strong-positioning to benefit from the continued growth of the Indian economy.

Analysts also see the company as a long-term bet given its strong parentage, growing business model and growth prospects in the coming years.

The company's public offer also garnered strong traction from investors as it was subscribed 37.37 times. The portion reserved for qualified institutional investors received maximum interest and was subscribed 57.09 times. Non-institutional investors also showed substantial interest with a subscription rate of 15.99 times, while the portion for retail investors was subscribed 10.32 times.

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JSW Infrastructure commands a P/E (price-to-earnings) ratio of 28.9 times based on its FY23 financials and its market capitalization stands at Rs 24,990 crore. In comparison, its listed peer Adani Ports and Special Economic Zone is trading at a P/E ratio of 33.8 times.

Moreover, the port operator has also showcased a strong track record of consistent performance, with a revenue, EBITDA and profit CAGR (compound annual growth rate) of 41 percent, 42 percent, and 62 percent, respectively, over the FY21-23 period.

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