The initial public offering (IPO) of business support services firm Updater Services and JSW Infrastructure, a part of Sajjan Jindal-led JSW Group, has received a decent response from investors on the final day of bidding.
The ₹2,800 crore IPO of JSW Infra, the ports business of JSW Group, was subscribed over 37% on the final day of bidding as it received bids for 508.69 crore equity shares as compared to issue size of 13.6 crore shares, as per the exchange data.
The quota reserved for retail investors was booked over 10%, while the quota for qualified institutional buyers (QIB) was subscribed more than 57%. The portion set aside for non-institutional investors (NIIs) was booked nearly 16 times.
As per the offer document filed with SEBI, the company has reserved up to 75% of the issue for QIB, up to 15% for NII, and the remaining 10% for retail investors.
Meanwhile, the public offer of Updater Services was booked nearly 2.9 times on the last day of bidding, receiving bids for 3.5 crore equity shares against issue size of 1.2 crore shares. Segment-wise, the retail portion was booked 1.32 times, NIIs by 0.85 times, and QIBs by 4.48 times. The company has reserved not less than 75% of the shares for QIBs, not more than 15% for NIIs, and not more than 10% for retail investors.
Updater Services has set a price band of ₹280 to ₹300 per equity share, which would fetch ₹640 crore at the upper end of the offer price. Out of ₹640 crore, ₹400 crore will be raised through the issuance of fresh equity shares, while the rest ₹240 crore will be garnered via offer for sale (OFS).
Ahead of the IPO, Updater Services raised ₹288 crore from 18 anchor investors at the upper price band of ₹300 per equity share. Anchor Book included marquee Domestic Institutional Investors such as ICICI Prudential, BNP Paribas, Aditya Birla Sunlife, Motilal Oswal etc., and Foreign Institutional Investors such as Copthall Mauritius, Franklin India, Societe Generale, CitiGroup Global Market and Nomura Singapore.
On the other hand, the IPO of JSW Infra is available at a price band of ₹113-119 per share, which is completely a fresh issue of 23.53 crore shares, which at the upper end of the price band will translate into an issue size of ₹2,800 crore.
The company intends to use the capital raised from IPO proceeds for repaying debts and expansion of Jaigarh Port, owned by its subsidiary, JSW Jaigarh Port. As per the offer document, it will use ₹880 crore for debt repayment, and ₹1,029.04 crore for expansion of Jaigarh Port. A part of the fund will also be used to invest in the subsidiary, JSW Mangalore Container, as part of the expansion of the Mangalore port franchise.
Earlier today, realty firm Signature Global and ethnic apparel retailer Sai Silks Kalamandir made their debut on the stock exchanges. While shares of Signature Global (India) were listed at a premium of 15.5% at ₹444 apiece on the NSE against the issue price of ₹385, Sai Silks shares debuted at ₹231 apiece on the NSE, up 4.1% over the IPO price of ₹222. Finally, Signature Global settled 19% higher at ₹458.40 per share on the BSE, while Sai Silks stocks ended 10.3% higher at ₹244.85 apiece over the issue price.
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