Exciting news for investors as Jsw Infra Surges with a 20% premium listing, proving the predictions of the grey market right. The stock of JSW Infra listed at 20% over its issue price of 119 on the NSE, but had run up 29% at the time of publishing. The grey market expected 25% listing gains for the stock.

This is the first listing from the JSW Group in 13 years after the 2010 listing of JSW Energy. The listing gains of a few recent market debuts, aside from Yatra Online, are shown below.

The following are the listing gains of the last few market debuts- JSW infra surges

On QIB rush, JSW Infra’s IPO was subscribed 37 times over shares on offer. This is the first IPO from the steel to power conglomerate in 13 years.

On the last day, qualified institutional buyers (QIBs) bid 57 times for the offer. Retail and non-institutional investors received good responses as well.

The second largest private port operator in the country plans to use the proceeds to pay loans and for capital expenditures to commission and expand projects, among other things.

There was a price band of 113-119 per equity share in the offer.

Analysts see long-term potential

From one port in Mormugao in 2002, the company now operates nine ports in Maharashtra, Goa, Karnataka on the west coast, and Odisha and Tamil Nadu on the east coast.

Additionally, it operates two port terminals under operations & maintenance agreements in Fujairah Terminal and Dibba Port in the UAE.

Between FY21 to FY23, the company’s revenues and profits have grown steadily. The company’s total debt as of June 2034 is 4,228 crores.

As the Indian economy continues to grow, JSW Infra will benefit. Prashanth Tapse, senior vice president of research at Mehta Equities, advises investors to ‘subscribe for the long term’, as he believes the company has diversified its cargo profile and geographical spread to minimise risk and ensure stability.

“We like the way the company is strategically expanding its footprint in non-major ports so that they will be able to offer fully integrated logistics solutions,” Tapse continues.

According to Anand Rathi’s IPO note, JSW Infrastructure has strategically located assets near customers and industrial clusters that are supported by a multi-modal evacuation infrastructure and predictable revenue streams.

In the upper price band, the company is valued at 27x P/E, with a market cap of 249,900 million and an 18.8% return on net worth. In our opinion, the valuation of the company is fair and we recommend a ‘subscribe-long term’ rating.

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