NEW DELHI: JSW Infrastructure, India’s second-largest private port operator, made a strong debut on the bourses on Tuesday and ended its first trading session with a 32% gain.
The scrip listed R143 per share on the BSE and the NSE, at a premium of 20.17%. The company’s share price closed at R157.30 per share on the BSE and NSE, a 32.18% premium.
The Market Capitalisation of the company at Tuesday’s closing price stood at R33,033.02 crore. The initial public offering (IPO) by JSW Infrastructure, part of billionaire Sajjan Jindal-led JSW Group, received a strong response and was subscribed 37.37 times. The company was eyeing to raise R2,800 crore through its public issue which would be used to pay debt and support the company’s aggressive expansion plans.
Arun Maheshwari, joint MD and CEO of JSW Infra said that post the cash received from the IPO, they are virtually debt-free now. This is the third IPO by the JSW Group (after Steel and energy businesses). As of March 31, 2023, JSW Infrastructure’s installed cargo handling capacity of 158.43 million tonnes per annum. JSW Infrastructure’s port business operations expanded from one Port Concession at Mormugao, Goa (acquired by the JSW Group in 2002) where it commenced operations in 2004, to nine Port Concessions as of June 30, 2023, across the Western and eastern coast of India.
The strong listing of JSW Infra came even as India’s stock market was reeling under selling pressure on Tuesday. A rise in the US dollar and treasury yields on fears of another interest rate hike by the Federal Reserve has made equity investors nervous worldwide, especially in the emerging markets. Further, a mixed auto sales number for September put pressure on auto stocks.
The Nifty50 on Tuesday fell 110 points, or 0.56%, to 19,528.75 while the Sensex closed the day at 65,512.10, down 316 points, or 0.48%. ONGC, Eicher Motor and Maruti Suzuki were among the top laggards in the Nifty50 pack. Investors will now shift their focus to the policy outcome of the RBI Monetary Policy Committee whose outcome is due on October 6.