In the IPO, SBI has offloaded 88.23 lakh shares at a significant premium to its original acquisition cost. SBI had strategically acquired its stake at an average price of Rs 65.45 per share, positioning itself for this blockbuster exit.
The IPO, comprising a Rs 2,000 crore offer for sale and Rs 1,600 crore fresh issue, will see SBI’s shareholding in the cement major slide from 1.22% to 0.47% post-listing.
SBI isn’t alone in celebrating, as fellow investors AP Asia Opportunistic Holdings and Synergy Metals are also doubling their money, having picked up shares at average costs of Rs 68.31 and Rs 67.82, respectively.
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JSW Cement, part of the diversified JSW Group conglomerate, ranks among India’s top 10 cement companies by installed capacity and sales volume as of March 2025. However, the company’s recent financial performance tells a tale of industry headwinds.Over FY23-FY25, JSW Cement’s revenue remained largely stagnant despite gradual volume growth, as fierce competitive intensity hammered cement realizations. The pressure proved too much, and EBITDA per tonne tumbled from Rs 787 in FY23 to Rs 645 in FY25, ultimately pushing the company from a Rs 104 crore profit in FY23 into the red.The company is banking on its new Nagaur-Rajasthan unit to boost profitability by expanding both clinker and grinding capacity, benefiting its subsidiaries. At the upper price band of Rs 147, the issue trades at around 36.7 times post-IPO EV/EBITDA based on FY25 earnings.
What brokerage say
“We believe JSW cement with its strong brand, core focus on growing GGBS product line across the North region as well giving the competitive advantage of increasing market share, strategic growth plans in grinding capacity, ease in supply & distribution and alignment with India’s sustainable infrastructure push going forward we may see profitability and returns in long run therefore, we recommend a ‘subscribe For Long Term’ rating to the issue,” Anand Rathi said.
Religare Broking acknowledged the elevated pricing but backed the company’s fundamentals: “The valuation is a bit on the higher side on a relative basis but seeing the company’s track record and strong promoter group, we recommend a Subscribe rating for long-term investors.”
With institutional investors like SBI already banking substantial gains and the cement sector facing ongoing margin pressures, JSW Cement’s market debut will test whether premium valuations can be sustained in a challenging operating environment.