JSW Infra shares extend gains after a strong maiden trading session, jumps 42% over IPO price

Shares of JSW Infrastructure extended its gains during its second trading session on Wednesday as the stock surged more than 7 per cent. The stock, which was listed at the bourses on Tuesday, had touched an upper circuit on its maiden trading session despite a sell-off in the broader market.

JSW Infra was listed at Rs 143 per share, with a premium 20 per cent over its issue price of Rs 119 apiece. However, the stock was locked in the upper circuit limit of 10 per cent and ended its first trading session with an overall gain of 32 per cent at Rs 157.30 over IPO price.

However, the stock found more buyers on Wednesday as the stock rose another 7 per cent to Rs 168.80 on Wednesday, commanding a total market capitalization of more than Rs 35,000 crore. The stock has rallied about 42 per cent over its issue price of Rs 119 in just two sessions.

The initial public offering (IPO) of JSW Infrastructure was open for subscription between September 25-27.  The JSW Group entity offered its shares in the range of Rs 113-119 apiece as it raised a total of Rs 2,800 crore from primary markets stake sale, which was entirely a sale of fresh shares. The issue was overall subscribed 37.37 times.

Analysts are mostly positive on the stock even in the longer run, citing its strong parentage, robust demand and growth prospects of the business. "With its Strong financial metrics and growing margin profile, it shows good growth prospects. We suggest investors to hold the stock for medium to long term Investment," said Mahesh M Ojha, AVP Research at Hensex Securities.

JSW Infrastructure, the second largest commercial port operator in India in cargo handling capacity as of FY23, provides maritime-related services, including cargo services, storage solutions and logistics services. It develops and operates ports and port terminals under port concessions for a long-term, about 30-50 years period.

The company's strong fundamentals and good subscription levels were positive factors for this. Investors who participated in the IPO can hold on to their shares for the long term, said Shivani Nyati, Head of Wealth at Swastika Investmart.

Sajjan Jindal-led JSW Infra is a port company which started with JSW Group as anchor customer and has since grown significantly as an independent Port operator servicing a wide range of customers across bulk cargo, LPG, containers, sugar and other commodities.

"We remain optimistic on the company and recommend investors who have received allotment to hold their shares and consider buying on dips as well from a medium to long term perspective," said Parth Shah, Research Analyst at StoxBox, formerly known as BP Equities.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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