JSW Infra shares to list on Tuesday; Here's what grey market premium signals

Shares of JSW Infrastructure are set to make their debut at Dalal Street on Tuesday. After a series of muted listings, the company is likely to make a strong listing gain, if one goes by signals from the grey market. The company will debut on Dalal Street after two working days from the closure of its IPO bidding.

Last heard, JSW Infra was commanding a premium of Rs 25-30 in the grey market, suggesting listing gains of 23-25 per cent over its issue price of Rs 119. The premium in the grey market has improved over the period from Rs 15-18 per share, thanks to its strong subscription numbers.

According to the analysts, tracking the primary markets and grey market signals, JSW Infra is likely to deliver a strong debut and is a long-term bet in the longer-run considering its strong parentage, strong and growing business model and growth prospects in the coming years.

"JSW Infrastructure received a decent subscription and we expect a decent listing for the issue. We expect the IPO to open at a premium of around 20 per cent over the issue price. The company enjoys a strong parentage of JSW Group which has a presence in various sectors in India, we believe the IPO is reasonably priced," said Parth Shah, Research Analyst at StoxBox.

"In addition to partnering with JSW Group customers to pursue their growth strategies, they have diversified their customer base to include third-party customers across geographies and have expanded their cargo mix by leveraging their locational advantage and maximizing asset utilisation," it added with a suggestion to hold the stock for long run and buying the dips in the counter.

JSW Infrastructure offered its shares in price band of Rs 113-119 per share with a lot size of 126 shares. The Rs 2,800 crore issue was open for bidding between September 25 to September 27. The Sajjan Jindal-led entity raised the entire sum through a sale of fresh issue equity shares.

The issue was overall subscribed 37.37 times, thanks to strong bidding from the qualified institutional bidders (QIBs), whose portion was booked 57.09 times. The allocation set aside for non-institutional investors saw 15.99 times bidding, while quota reserved for retail investors was subscribed a little more than 10.32 times during the three-day bidding process.

JSW Infra provides maritime-related services, which includes logistics services, storage solutions and cargo handling. It develops and operates ports and port terminals under port concessions for long-term, say 30-50 years period. JSW Infra was incorporated in 2006 and it is the second largest commercial port operator in the country in terms of cargo handling capacity.

The issue was managed by JM Financial, Dam Capital Advisors, Credit Suisse Securities (India), HSBC Securities & Capital Markets, Axis Capital, ICICI Securities, Kotak Mahindra Capital and SBI Capital Markets, while Kfin Technologies was the registrar for the IPO of JSW Infra.

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