The analyst cites strong group support but warns of debt and sector headwinds.
JSW Cement’s initial public offering (IPO) entered its second day, with a total subscription of 0.39, as per BSE data. Set at a price band between ₹139 and ₹147 per share, the cement maker aims to raise ₹3,600 crore, of which ₹2,000 crore will be via the offer for sale (OFS) route and the remaining ₹1,600 crore through the issuance of fresh shares.
At the upper end of this range, JSW Cement is poised for a valuation of around ₹20,000 crore, according to reports.
Day 2 Subscription Snapshot
Qualified Institutional Buyers (QIBs) subscribed 0.23 times, bidding for 1.17 crore shares against 5.18 crore offered, while Non-Institutional Investors (NIIs) subscribed 0.30 times, bidding for 1.15 crore shares against 3.88 crore offered.
Retail Individual Investors (RIIs) subscribed 0.52 times, bidding for 4.75 crore shares against 9.06 crore offered.
Analyst Take
According to SEBI-registered analyst Aditya Hujband, JSW Cement’s strengths lie in its backing by JSW Group, which provides financial and strategic support, a diversified product mix, and a solid presence in southern and eastern India, with ongoing expansion into the northern market.
JSW Cement also emphasizes sustainable production, using by-products like slag and fly ash to reduce costs and environmental impact.
However, he also cautioned on certain key risks. The company reported a net loss of ₹164 crore in FY25, indicating margin pressure and cost escalation. Total borrowings climbed to ₹6,166 crore in FY25, up nearly 14% over two years, raising debt servicing concerns.
The cement industry’s cyclical nature exposes JSW Cement to fluctuations in economic activity, real estate demand, and infrastructure spending, Hujband added.
The high capital intensity nature of the sector means future expansion will require significant investment, and any delays or overruns could strain finances. Heavy reliance on related-party transactions within the JSW Group may also create governance risks, while compliance with stringent environmental regulations could increase costs, the analyst said.
With giant competitors such as UltraTech Cement, Shree Cement, and Dalmia Bharat exerting pricing pressure, JSW Cement faces a challenging market landscape, he noted.
Hujband said that aggressive investors with a high-risk appetite could consider applying for the IPO, but also issued caution due to its recent financial underperformance and high debt levels.
JSW Cement IPO Details
The IPO opened for subscription on August 7 and is expected to close on August 11. The allotment is likely to be finalized on August 12, with the shares expected to list on the primary indices on August 14.
According to reports, JSW Cement promoters’ shareholding will be trimmed from 78.61% to 72.33% post the IPO.
The IPO proceeds are reportedly earmarked for setting up a new integrated cement unit (₹800 crore), prepayment or repayment of borrowings (₹520 crore), and general corporate purposes (₹2,280 crore).
Company Details
JSW Cement focuses on producing eco-friendly, sustainable cement products. The company operates seven manufacturing units across India, comprising one integrated plant, one clinker unit, and five grinding units, with a total installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA) as of March 31, 2025.
Capacity distribution includes 11.00 MMTPA in Southern India, 4.50 MMTPA in Western India, and 5.10 MMTPA in Eastern India. The company has a distribution network of 4,653 dealers, 8,844 sub-dealers, and 158 warehouses nationwide.
Its product portfolio covers blended cement, ordinary Portland cement, and GGBS (Ground Granulated Blast Furnace Slag), along with clinker as a core input for cement manufacturing.
JSW Cement also offers allied products such as ready-mix concrete (RMC), screened slag, and construction chemicals.
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