JSW Infra shares turn multibagger within two months of listing; mcap tops Rs 50,000 cr

JSW Infrastructure Ltd, which made its debut at the bourses in October this year, has turned multibagger with just two months of listing. The Jindal Group's latest debutant surged about 8 per cent during the trading session on Wednesday amid the positive news flow for the company.

JSW Infrastructure, through its subsidiary JSW Dharamtar Port, has announced plans to acquire a majority stake in PNP Maritime for Rs 270 crore from SP Port Maintenance. JSW Infrastructure-led entity entered into a share purchase agreement for acquiring 50 per cent plus 1 share of PNP Maritime from SP Port Maintenance, said the company in an exchange filing.

PNP Port is operating multi-purpose jetties at Shahabad in Raigad, Maharashtra. The port currently has an annual capacity of 5 million tonnes per annum (MTPA) and can expand it to 19 MTPA. The PNP Port has a revenue of Rs 211.63 crore as of March 2023. The company has 15 days to complete the transaction.

PNPL operates multi-purpose jetties and has good road and rail connections to industries in Maharashtra, Madhya Pradesh, Karnataka, and other states and can, consequently, help JSWIL expand its third-party volume. PNPL also has adequate land to expand its capacity from 5 MTPA currently to 19 MTPA, said JM Financial.

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The acquisition from Shapoorji Pallonji Group is in line with JSW Infra's value-accretive acquisition strategy, as outlined in our coverage note (link). It has already announced two acquisitions since its listing in October 2023, it said. "We reflect this acquisition in our estimates and revise our March 2025 target price to Rs 255," maintaining a 'buy' rating.

Shares of JSW Infrastructure surged as much as 8 per cent to Rs 245 on Wednesday, its new record highs, commanding a total market capitalization of more than Rs 51,000 crore mark. The script had previously settled at Rs 227.15 in the previous trading session on Tuesday.

JSW Infra launched its IPO between September 25-27 to raise Rs 2,800 crore via primary route. It sold its shares for Rs 119 apiece and the stock has more than doubled investor's wealth from the issue price, rising about 105 per cent. Even from its listing price, the stock has gained about 70 per cent.

Incorporated in 2006, JSW Infrastructure provides maritime-related services including, cargo handling, storage solutions and logistics services. The company develops and operates ports and port terminals under Port Concessions. JSW Infra is the second largest commercial port operator in the country.

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