JSW Infrastructure, Vaibhav Jewellers shares to debut on Tuesday. What GMP signals ahead of listing

The shares of JSW Infrastructure and Vaibhav Jewellers will debut on the exchanges on Tuesday. While JSW Infra is expected to get a decent listing, Vaibhav Jewellers might struggle.

Ahead of the listing, JSW Infra shares are commanding a premium of Rs 28 in the unlisted market. The issue was priced in the range of Rs 119 at the upper end. Considering this, the stock is likely to list at 23% premium over the offer price.

The IPO, which is the first from JSW Group in nearly 13 years, received a strong subscription of about 39.6x.

"Since the company enjoys a strong parentage of JSW Group which has a presence in various sectors in India and offers customer stickiness in the long term, we believe the IPO is reasonably priced. Also, the company has a track record of sustained revenue/EBITDA/PAT performance which grew at a CAGR of 41.2%/42.1%/62.3% during FY 2021-23 period," said Parth Shah, Research Analyst, StoxBox.

JSW Infrastructure is the fastest growing port-related infra company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY21-23, and the second largest domestic commercial port operator by cargo handling capacity in FY23.

For the three months ended June 2023, the company's revenue from operations jumped 7% year-on-year to Rs 878 crore, while net profit grew 68% to Rs 322 crore. Its installed cargo handling capacity in India grew at a CAGR of 15.27% from FY21-23. During the same period, the cargo volumes handled in India jumped at a CAGR of 42.76%.

Net proceeds from the issue will be utilised towards repayment of debt, financing capital expenditure, and other general corporate purposes.

"In addition to partnering with JSW Group customers to pursue their growth strategies, they have diversified their customer base to include third-party customers across geographies and have expanded their cargo mix by leveraging their locational advantage and maximizing asset utilization," Shah added.

Meanwhile, the GMP of Vaibhav Jewellers is Rs 2 in the unlisted market, which indicates a flattish or even a negative listing.

The IPO of Vaibhav Jewellers was fully subscribed on the last day of the bidding process. The overall subscription stood at 2.25 times at close. The issue was priced in the range of Rs 204-215.

The company is one of the earlier entrants in the organised jewellery retail market of Andhra Pradesh and continues to focus on regional expansion into the high-growth untapped regions within the micro-markets of Andhra Pradesh and Telangana.

About 77% of its retail showrooms are in tier 2 and tier 3 cities and the rest are in Hyderabad and Visakhapatnam catering to urban consumers.

Net proceeds from the issue will be used towards capex costs for the proposed 8 new showrooms, inventory cost of new showrooms and other general corporate purposes.

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