Introduction
The JSW Infrastructure IPO has made quite an entrance into the stock market, with its share price debuting at a 20% premium on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). In this article, we will delve into the details of this remarkable debut and understand what it means for investors and the company itself.
A Strong Debut
JSW Infrastructure share price started its journey on the NSE and BSE at ₹143 per share, a notable 20.2% higher than the issue price of ₹119. This impressive premium reflects strong investor interest and confidence in the company’s prospects.
A Decent Listing Performance
Following its debut, JSW Infrastructure shares quickly gained momentum, hitting a 10% upper circuit. This surge in demand suggests that investors see substantial potential in the company.
Impressive Closing Premium
The closing numbers on the BSE and NSE were equally impressive, with JSW Infrastructure share price ending the day at ₹157.30 per share on the BSE and NSE, representing a remarkable 32.18% premium compared to the issue price.
High Trading Volumes
The trading volumes for JSW Infrastructure were substantial on day one. A total of 1221.17 lakh shares were traded on the NSE, while the BSE recorded 57.99 lakh shares changing hands. The combined turnover (BSE+NSE) amounted to a whopping Rs. 1,849.28 crore.
Market Capitalization Soars
As per reports from the BSE and NSE, the market capitalization of JSW Infrastructure at the closing price was an impressive Rs. 33,033.02 crore. This underlines the company’s robust financial standing and its potential for future growth.
IPO Details
JSW Infrastructure IPO opened for subscription from September 25th to September 27th. The price band for the public offer was set between ₹113 and ₹119. The allocation of shares in the public issue was as follows:
- Qualified Institutional Buyers (QIB): 75%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 10%
Utilizing the Funds
JSW Infrastructure Limited’s IPO comprised a fresh issuance of ₹2,800 crore worth of shares, with no offer for sale (OFS) component. According to the Red Herring Prospectus (RHP), the company plans to utilize the net proceeds from the offering for the following purposes:
- Investing in fully-owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd, for debt prepayment or repayment.
- Financing capital expenditure requirements for proposed expansion and upgradation works at Jaigarh Port, including the expansion of the LPG terminal, the establishment of an electric sub-station, and the purchase and installation of a dredger.
Key Players in the IPO
Several prominent financial institutions were involved in the JSW Infrastructure IPO:
- JM Financial Ltd
- Axis Capital Ltd
- Credit Suisse Securities (India) Private Ltd
- DAM Capital Advisors Ltd
- HSBC Securities and Capital Markets (India) Private Ltd
- ICICI Securities Ltd
- Kotak Mahindra Capital Company Ltd
- SBI Capital Market Ltd
KFin Technologies Ltd served as the offer’s registrar.
Grey Market Premium (GMP)
The grey market premium (GMP) for JSW Infrastructure IPO remained robust, standing at +31, which was consistent with the previous two trading sessions. The GMP indicates that JSW Infra shares were trading at a premium of ₹31 in the grey market. Considering this, the estimated listing price for JSW Infrastructure shares was ₹150 apiece, representing a substantial 26.05% premium over the IPO price of ₹119.
Conclusion
The debut of JSW Infrastructure on the NSE and BSE has been nothing short of spectacular. With a significant premium over the issue price, high trading volumes, and a soaring market capitalization, it’s evident that investors are keen on this infrastructure giant. The company’s plans to utilize the IPO proceeds for expansion and debt repayment only add to its growth potential.
Investors and market enthusiasts will undoubtedly be keeping a close eye on JSW Infrastructure’s journey as it navigates the dynamic landscape of the stock market.
FAQs
What was the premium at which JSW Infrastructure shares debuted on the NSE and BSE?
JSW Infrastructure shares debuted at a 20.2% premium, with a listing price of ₹143 per share.
How did JSW Infrastructure shares perform on their debut day?
JSW Infrastructure shares hit a 10% upper circuit on their debut, indicating strong demand.
What was the closing premium of JSW Infrastructure shares on the BSE and NSE?
The closing premium was an impressive 32.18% on both the BSE and NSE.
How were the funds raised from the IPO intended to be used?
The funds raised from the IPO were intended for debt repayment and financing expansion projects at Jaigarh Port.
What is the grey market premium (GMP) for JSW Infrastructure shares?
The GMP for JSW Infrastructure shares stood at +31, reflecting strong investor interest and a premium in the grey market.
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