JSW Infrastructure IPO Oversubscribed 2.13x on Day 2, Retail Investors Lead the Way

26 Sep 2023 , 10:12 PM

The maiden public offering of JSW Infrastructure, marking the JSW Group’s first IPO in the last 13 years, has garnered a favorable response from investors on the second day of bidding, September 26. Investors subscribed to 29.02 crore equity shares against an offer size of 13.62 crore, resulting in a subscription rate of 2.13 times. Click here to subscribe the IPO.

Retail investors have been particularly enthusiastic about the offering, subscribing 4.52 times the allotted quota, which accounts for 10% of the total offer size. Non-institutional investors have also shown significant interest, subscribing 3.7 times their allocation.

Qualified institutional buyers, with the highest quota of 75% in the offering, have subscribed to 55% of their reserved portion.

By the end of the first day of bidding on September 25, the IPO had achieved a subscription rate of 43%.

JSW Infrastructure, a provider of maritime-related services, including cargo handling, storage solutions, logistics services, and other value-added services, is aiming to raise Rs 2,800 crore through its public offering at the upper price band. The IPO consists entirely of fresh issue shares, meaning that the entire issue proceeds will be utilized by the company.

The price band for the public offering, which closes on September 27, is set at Rs 113-119 per share. The company plans to use the net fresh issue proceeds to reduce its debt by Rs 880 crore, with an additional Rs 1,029.04 crore allocated for expansion or upgrade projects at Jaigarh Port, owned by its subsidiary, JSW Jaigarh Port.