Overall, the IPO saw a muted response, with total subscription reaching 30% as of Day 2. Investors have until Monday, August 11, to subscribe, with the offer open for a three-day window.
JSW Cement IPO GMP Today:
The JSW Cement IPO is attracting modest interest in the grey market, with shares expected to list around Rs 159—about 8% higher than the upper end of the issue price band set at Rs 147. This grey market premium (GMP) suggests cautious optimism among investors, pointing to expectations of a reasonably strong listing. However, it’s important to remember that the GMP is unofficial and based on informal, off-market trading. While it doesn’t guarantee the actual listing price, it does provide insight into investor sentiment and underlying demand, particularly from the retail segment.
JSW Cement IPO Subscription Status:
The JSW Cement IPO received a subdued response from investors on Day 2, with overall subscription reaching just 32% as of 10:10 AM, according to data from the stock exchanges.
Retail Individual Investors (RIIs) showed slightly better interest, subscribing to 41% of the allotted 9.06 crore shares, though demand remained soft in the early hours. Non-Institutional Investors (NIIs), which include high-net-worth individuals and corporate investors, have subscribed to 23% of their allocated 3.88 crore shares.
Among the investor categories, Qualified Institutional Buyers (QIBs) have subscribed to 23% of their allotted 5.17 crore shares.
JSW Cement IPO price band and other details
JSW Cement has fixed the price band of its Rs 3,600 crore initial public offering between Rs 139 and Rs 147 per share, with a face value of Rs 10. Retail investors can apply for the issue by bidding for a minimum of 102 equity shares and in multiples thereafter, on or before the last date of subscription on Monday, August 11.
JSW Cement IPO structure
The JSW Cement PO comprises a fresh issue of Rs 1,600 crore and an offer for sale (OFS) worth Rs 2,000 crore. The OFS portion will see existing shareholders, including Apollo Management, Synergy Metals Investments Holding Ltd, and the State Bank of India (SBI) divest their holdings. Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, will offload shares worth Rs 931.8 crore.
Synergy Metals, a private equity firm backed by former ArcelorMittal executive Sudhir Maheshwari, will sell shares valued at Rs 938.5 crore. Meanwhile, SBI plans to divest shares amounting to Rs 129.7 crore.
The IPO has been structured in a manner where 50% of the issue is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail individual investors.
Use of IPO proceeds and expansion plans
According to the red herring prospectus, JSW Cement plans to use Rs 800 crore from the IPO proceeds to partially fund a new integrated cement plant in Nagaur, Rajasthan. Another Rs 520 crore will go toward the repayment or prepayment of outstanding borrowings, thereby strengthening the company’s balance sheet. The remaining proceeds are earmarked for general corporate purposes. Notably, the fresh issue size was revised downward from Rs 2,000 crore to Rs 1,600 crore, indicating a recalibrated capital requirement.
JSW Cement financial performance
Investor interest remains high despite a dip in profitability. JSW Cement reported a revenue of Rs 6,028 crore in FY24, up from Rs 5,837 crore in FY23, indicating a steady top-line growth.
However, the company’s net profit declined to Rs 62 crore in FY24, compared to Rs 104 crore in the previous fiscal. The firm continues to focus on capacity expansion and operational efficiency, which could support future earnings growth.
JSW Cement IPO – Should You Subscribe?
Canara Bank Securities: ‘Subscribe’ for Long-Term Potential: “Over FY23 to FY25, the company showed financial volatility, with revenues fluctuating between Rs 5,836–Rs 6,028 crore and turning a net loss of Rs 163 crore in FY25 due to non-recurring items and weak subsidiary performance. Operating as a price taker, its topline remained muted. Valuations appear stretched at 32x EV/EBITDA and 6x PB, above peer averages of 23X EV/EBITDA and 4X PB. However, it stands out as India’s fastest-growing and the world’s greenest cement producer, backed by strong synergies with JSW Steel. Despite short-term concerns, we recommend SUBSCRIBE to the issue, given its growth potential, sustainability focus, and strategic alignment within the JSW Group.”
AUM Capital Research recommends a “SUBSCRIBE”: “JSW Cement is one of the fastest growing cement manufacturing companies in India in terms of installed grinding capacity and sales volume. Being the largest producer of Ground Granulated Blast Furnace Slag (GGBS) gives it a competitive advantage. Strong branding of JSW Group as a whole is an added advantage in terms of financial flexibility and operational synergies. We would recommend a SUBSCRIBE to the issue.”
SBI Securities: Expansion Plans and Valuation Outlook: “JCL is among the top 10 cement companies in India in terms of installed cement capacity. The company has laid out strong plans for capacity expansion and regional diversification, aiming to more than double its grinding and clinker capacities in the medium term. It has set a target to achieve a total installed cement capacity of 60 MMTPA by the middle of the next decade. In FY25, JCL’s cement EBITDA per tonne stood at Rs 645, which was impacted by a one-time fair value loss on CCPS (now converted into equity), along with losses from Shiva Cement and its Fujairah joint venture. To improve profitability, the company has outlined cost-saving strategies, focusing particularly on reducing power and fuel costs and minimising lead distance.
The financial performance of its subsidiary, Shiva Cement, is also expected to improve significantly with the anticipated commencement of a 1 MMTPA grinding unit in FY26. This unit, currently being developed by Bhushan Power & Steel, will be transferred to Shiva Cement upon completion. At present, Shiva Cement operates only a 1.32 MMTPA clinker capacity. At the upper price band of ₹147, the IPO is valued at a FY25 EV/Adjusted EBITDA multiple of 28.5x and an EV per tonne of $135.”
About JSW Cement
JSW Cement, part of the JSW Group, is known for producing eco-friendly cement and maintaining a strong focus on sustainability and innovation in the construction sector. The company operates seven plants across India, including one integrated unit, one clinker unit, and five grinding units. Its facilities are located in Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, West Bengal, and Odisha. It also owns a majority stake in Shiva Cement’s clinker unit in Odisha.
As of March 31, 2025, JSW Cement had a total installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA), distributed across the southern (11.00 MMTPA), western (4.50 MMTPA), and eastern (5.10 MMTPA) regions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)