JSW Infrastructure IPO: Allotment Scheduled for October 29th
The allocation process for the JSW Infrastructure IPO is on track to be concluded on October 29th.
Strong Investor Demand
The Rs 2,800 crore IPO saw robust demand, with bids submitted for 5,09,32,86,660 shares, equivalent to almost 38 percent of the total shares offered. This notable response came in contrast to the 13,62,83,186 shares made available.
Grey Market Premium (GMP)
Market observers have noted that JSW Infrastructure Ltd is currently trading at a premium of 31 rupees on the unofficial market. Interestingly, the maximum issue price per share in the IPO was set at Rs 119, which represents approximately a 26.05 percent increase over the grey market premium of Rs 31, commonly referred to as GMP.
This suggests that the grey market foresees a listing gain of 26.05 percent when the company goes public. The term “grey market premium” signifies investors’ willingness to pay more than the issue price for these shares.
JSW Infrastructure IPO: Price Range
The IPO offered shares within a price range of Rs 113 to Rs 119 per share, successfully raising up to Rs 2,800 crore.
JSW Infrastructure IPO: Key Details
This public offering exclusively featured newly issued equity shares. Notably, anchor investors contributed a substantial sum of Rs 1,260 crore to JSW Infrastructure.
Utilization of Proceeds
As outlined in the circular, the proceeds from the IPO will be used for various purposes:
- Rs 880 crore will be allocated to debt repayment.
- Rs 865.75 crore will fund capital expenses for an LPG terminal project.
- Rs 59.4 crore is earmarked for the construction of an electric sub-station.
- Additionally, Rs 151.04 crore will be dedicated to the proposed expansion of the Mangalore Container Terminal, and Rs 103.88 crore will be utilized for the acquisition and installation of a dredger.