JSW Cement made a tepid market debut on Thursday, listing at a 4% premium to its IPO price of ₹147 per share. The stock opened at ₹153 on the BSE and at ₹153.50 on the NSE.
At the time of writing, the shares were up 3.3% at ₹151.6.
IPO Details
The IPO opened for subscription on August 7 and closed on August 11, with the allotment finalized on August 12. Set at a price band between ₹139 and ₹147 per share, the cement maker aimed to raise ₹3,600 crore, of which ₹2,000 crore was via the offer for sale (OFS) route and the remaining ₹1,600 crore through the issuance of fresh shares.
The IPO saw an overall subscription of 7.77 times, driven by strong demand from qualified institutional buyers (QIBs) at 15.80, non-institutional investors (NIIs) at 10.97, and retail investors at 1.81.
The company had reserved not more than 50% of the shares in the public issue for QIBs, not less than 15% for NIIs, and not less than 35% for retail investors.
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).
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.
He also flagged key risks, including a reported 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, he added.
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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