JSW Infrastructure IPO: Listing day Update

JSW Infrastructure Ltd had a very robust listing on 03rd October 2023, listing at a smart premium of 20.17%, and rallying further from the listing price to hit the 10% upper circuit on the day of listing. While the closing price on 03rd October 2023 was above the IPO issue price for the day, it also closed comfortably above the listing price and the issue price of the IPO. For the day, the Nifty closed 110 points lower while the Sensex closed a full 316 points lower. Both the Nifty and the Sensex stayed under pressure through the day and this performance by JSW Infrastructure on the day of listing was appreciable in the light of the weariness in the overall market indices.

The stock had seen a very strong subscription in the IPO. The subscription was 39.36X  overall and QIB subscription was at 60.12X. In addition, the retail portion had got subscribed 10.87X in the IPO while the HNI / NII portion also got a healthy subscription of 16.83X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock hit the upper circuit of 10% at close. Here is the JSW Infrastructure Ltd listing story on 03rd October 2023.

IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹119 which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹113 to ₹119 per share. On 03rd October 2023, the stock of JSW Infrastructure Ltd listed on the NSE at a price of ₹143, a strong premium of 20.17% over the IPO issue price of ₹119 per share. On the BSE also, the stock listed at ₹143, a premium of 20.17% over the IPO issue price of ₹119 per share.

How the stock of JSW Infrastructure Ltd closed on both exchanges

On the NSE, JSW Infrastructure IPO closed on 03rd October 2023 at a price of ₹157.30. That is a first day closing premium of 32.18% on the issue price of ₹119 and also a premium of 10% on the listing price of ₹143. In fact, the listing price turned out to be just above the low price of the day and the stock traded almost for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹157.30. That represents a first day closing premium of 32.18% above the IPO issue price and also a premium of 10% above the listing price on the BSE. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 after rallying higher. In fact, the opening price turned out to be very near to the low price of the day on the NSE and also on the BSE. The high price of the day exactly the closing price of the day, since the stock closed on 03rd October 2023 with buyers and no sellers at the 10% upper circuit.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 03rd October 2023. On Day-1 of listing, JSW Infrastructure Ltd touched a high of ₹157.30 on the NSE and a low of ₹142.20. The premium to the listing price sustained through most part of the day. While the low price of the day was just below the IPO opening price, the stock of JSW Infrastructure closed the day exactly at the 10% upper circuit. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment.. If you look at the range of prices, the stock opening price turned out to be very near to the low point of the day while the closing price of the day was exactly at the upper circuit of the day for the stock.. On Day-1 of listing, the JSW Infrastructure Ltd stock traded a total of 1,221.17 lakh shares on NSE amounting to value of ₹1,840.43 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with serious buying emerging towards the end. The stock closed the day with pending buy orders of 26,74,094 shares on the NSE. 

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 03rd October 2023. On Day-1 of listing, JSW Infrastructure Ltd touched a high of ₹157.30 on the BSE and a low of ₹141.75. The premium to the listing price sustained through most part of the day. While the low price of the day was just below the IPO opening price, the stock of JSW Infrastructure closed the day exactly at the 10% upper circuit. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment.. If you look at the range of prices, the stock opening price turned out to be very near to the low point of the day while the closing price of the day was exactly at the upper circuit of the day for the stock.. On Day-1 of listing, the JSW Infrastructure Ltd stock traded a total of 57.99 lakh shares on BSE amounting to value of ₹88.80 crore during the day.

The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with serious buying emerging towards the end. The stock closed the day with pending buy orders on the BSE also.  

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session. The sharp correction in the Nifty and the Sensex really did not deter the stock too much as it continued its up move. That makes it a rather attractive stock after the strong listing on Tuesday. On the NSE, out of the total 1,221.17 lakh shares traded during the first day of trading, the deliverable quantity represented 715.49 lakh shares or a deliverable percentage of 58.68% on the NSE, which is higher than the routine listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 57.99 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 31.17 lakh shares representing total deliverable percentage of 53.75%, which is lower than the delivery ratio on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, JSW Infrastructure Ltd had a market capitalization of ₹33,033 crore with free-float market cap of ₹1,982 crore. JSW Infrastructure Ltd has issued capital of 210 crore shares with a par value of ₹2 per share.