JSW Infrastructure, India’s second-largest commercial port operator, witnessed a remarkable 20.17% surge in its stock price during pre-open trading on Tuesday, valuing the company at $3.61 billion (approximately 300.30 billion Indian rupees). This impressive debut follows a string of recent successful initial public offerings (IPOs) in India, driven by robust investor interest. The IPO’s proceeds are earmarked for expansion projects and debt repayment.
JSW Infrastructure, a key component of the billionaire Sajjan Jindal-led JSW Group, is poised to join the ranks of several other triumphant domestic debutantes. The stock opened at 143 rupees during pre-open trade, significantly higher than its IPO price of 119 rupees. Notably, this marks the first public offering by a JSW Group entity since JSW Energy in 2010. Importantly, the company achieved its objective of raising 28 billion rupees through the sale of fresh shares, while JSW Group retained its existing shareholding.
This remarkable feat by JSW Infrastructure adds to the success stories of numerous companies that have gone public in India over the past few months. This trend can be attributed to a strong appetite among investors, which has concurrently propelled the blue-chip stock market index to reach historic highs. In 2023, a total of 227 Indian companies have ventured into the IPO market, collectively raising $6.62 billion in capital. This stands in contrast to the 172 companies that raised $10.53 billion during the same period in the previous year, as per data from the London Stock Exchange Group (LSEG).
JSW Infrastructure’s financial performance underscores its appeal to investors. In the fiscal year 2023, the company reported a profit of 7.50 billion rupees, representing more than a doubling compared to the previous year. Additionally, its revenue experienced a substantial surge of approximately 41% to reach 31.95 billion rupees, as detailed in its IPO prospectus.
The infusion of capital through the IPO will be strategically employed by JSW Infrastructure to fuel its ambitious expansion projects and facilitate debt repayment. As of March 31, the company’s outstanding debt stood at 22.16 billion rupees. Looking ahead, JSW Infrastructure aspires to nearly double its operational capacity to an impressive 300 million tonnes per annum (MTPA) by 2030. However, this will still place it behind Adani Ports, which currently boasts a capacity of around 558 MMTPA. Adani Ports, a listed entity within the conglomerate led by billionaire Gautam Adani, commands a market value of approximately 1.78 trillion rupees.
The successful execution of the JSW Infrastructure IPO can be attributed to the concerted efforts of several prominent lead managers, including Axis Capital, Credit Suisse Securities (India), and Kotak Mahindra Capital.
This remarkable performance by JSW Infrastructure exemplifies the strong investor sentiment in India’s IPO market, positioning the company for significant growth and expansion in the coming years. As the nation continues to witness a surge in IPO activity and increasing investor confidence, this accomplishment signifies a promising future for India’s economic landscape.
