JSW Infrastructure IPO opens for subscription; check live details here

25 Sep 2023 , 12:08 PM

The largest IPO of the month, offered by JSW Infrastructure, became available for public subscription on Monday, September 25, and is scheduled to conclude on Wednesday, September 27. Click here to subscribe the IPO.

Within the initial two hours of its opening, the IPO achieved a subscription rate of 0.13 times. Notably, the retail segment of the IPO received bids equivalent to 0.54 times its allotment, while the HNI (High Net Worth Individual) segment reached a subscription rate of 0.10 times.

This significant Rs 2,800 crore IPO from JSW Infrastructure marks the conglomerate’s first IPO in 13 years. Prior to the IPO’s launch, the company successfully raised Rs 1,260 crore from anchor investors, with participation from esteemed entities such as Morgan Stanley, Goldman Sachs, Abakkus Investment, SBI Mutual Fund, and the Government of Singapore, among others.

The allocation of shares in the public issue is structured as follows: a minimum of 75% of the shares are reserved for Qualified Institutional Buyers (QIB), up to 15% for Non-Institutional Investors (NII), and a maximum of 10% of the offering is set aside for Retail Investors.

As outlined in the Red Herring Prospectus (RHP), the company intends to utilize the net proceeds from the IPO to invest in its wholly-owned subsidiaries, JSW Dharamtar Port Private Limited and JSW Jaigarh Port Ltd., for the purpose of prepaying or repaying certain outstanding borrowings. Furthermore, the company plans to fund its capital expenditure requirements by investing in its wholly-owned subsidiary, JSW Jaigarh Port Ltd., to facilitate expansion and upgrading initiatives at Jaigarh Port. This includes expanding the LPG terminal, establishing an electric sub-station, and acquiring and installing a dredger.

The book running lead managers for the IPO include 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, and SBI Capital Market Ltd.