Stock Check: JSW Infra jumps almost 100% from IPO price in 5 months; should you still buy?
₹236, the newly listed JSW Infra has surged almost 100 percent jump from its IPO price of ₹119 in less than 5 months. The port infra firm had made a strong debut on the bourses on October 3, 2023, listing at ₹143 on NSE and BSE, a premium of 20.17 percent from its IPO price. The ₹2,800 crore IPO was open for subscription between September 25 and September 27 at a price band in the range of ₹113-119 per share.
The issue was overall subscribed to 37.37 times. The portion for qualified institutional bidders (QIBs) was booked 57.09 times, while the portion set aside for non-institutional investors saw 15.99 times bidding. The allocation reserved for retail investors was subscribed to a little more than 10.32 times during the bidding process.
The IPO comprised of only a fresh issuance of ₹2,800 crore worth of shares; there's no offer for sale (OFS) component. The stock has advanced 10 percent just in February so far after a 3.2 percent rise in January. However, before this, it fell 1 percent in December 2023 but had rallied over 24 percent in November last year.
Late last year, the stock hit its record high of ₹247.40 on December 7, 2023. It is currently just around 5 percent away from that peak. Meanwhile, it has advanced over 66 percent from its 52-week low of ₹141.75, hit on its listing day (October 3, 2023).
JSW Infra's consolidated net profit more than doubled year-on-year (YoY) to ₹250.66 crore in the December quarter, buoyed by increased cargo volumes and higher tariffs. The JSW Group company had reported ₹114.89 crore in net profit a year ago. Its revenue from operations in Q3FY24 stood at ₹940.11 crore, rising 17.85 YoY.
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