The inventory listed at Rs 153 on the BSE, 4.1% above its IPO worth of Rs 147, and at Rs 153.50 on the NSE, a 4.4% premium. However momentum shortly light, with shares dropping to an intraday low of Rs 145.05 on each exchanges, down 5.2% and 5.5% respectively from their opening ranges.
The efficiency nonetheless beat the gray market premium of Rs 151 seen forward of itemizing, which had implied a acquire of round 3%.
Stable IPO demand, muted pop
JSW Cement’s book-built IPO, which ran from August 7 to 11, drew 7.77 instances subscription total, fuelled largely by institutional demand. Certified institutional consumers bid 15.80 instances their quota, non-institutional traders 10.97 instances, and retail traders 1.81 instances. The allotments have been finalised on August 12.
The difficulty comprised a Rs 1,600-crore contemporary sale of 10.88 crore shares and an Rs 2,000-crore supply on the market of 13.61 crore shares by promoters. Forward of the launch, the corporate raised Rs 1,080 crore from anchor traders, together with marquee home and international establishments.
What ought to traders do?
Shivani Nyati, Head of Wealth at Swastika Investmart, stated JSW Cement’s debut at Rs 153.50 amounted to a flat itemizing. Nyati famous the corporate is amongst India’s high 10 cement makers and is increasing aggressively via new and current initiatives to double grinding capability. Nevertheless, income and revenue progress have been uneven prior to now three years, and excessive valuations mixed with present losses may set off short-term volatility.”Being in a progress part, the corporate’s excessive valuation and present losses may result in short-term volatility in returns,” stated Nyati.Nyati suggested IPO traders looking for itemizing beneficial properties to maintain a cease loss at Rs 138, whereas medium-term to long-term traders may maintain the inventory for its progress potential.SimranJeet Singh Bhatia, Senior Fairness Analysis Analyst at Almondz International, additionally flagged considerations over JSW Cement’s working efficiency, pointing to excessive debt ranges and weak protection ratios.
“The corporate’s working efficiency continued to be weak, with considerations primarily about excessive debt and weak protection ratios. On the income entrance, the corporate has posted progress from FY23 until date. Income in FY25 stood at ₹5,813 crore, whereas working margins declined to 12% in FY25 from 15.37% in FY24,” stated Bhatia.
Debt climbed to ₹6,166 crore in FY25 from ₹5,420 crore in FY23, with debt-to-EBITDA at 8.63x. Regardless of plans to just about double its grinding capability from 20.6 MTPA to 41.85 MTPA, Bhatia suggested traders to ebook income given the stretched steadiness sheet and comfortable working metrics.
Analyst views and valuation
“JSW Cement’s Rs 3,600-crore IPO wrapped up its third and remaining day of bidding with full subscription, reflecting robust investor curiosity regardless of a softening in gray market premiums to round 3–4% forward of itemizing,” stated Gaurav Garg of Lemonn Markets Desk.
“We advise subscribing solely with a long-term view, citing wealthy valuations and near-term earnings stress, however highlighting the corporate’s robust progress potential in India’s infrastructure growth.”
Brokerages had broadly suggested long-term positions. Canara Financial institution Securities described JSW Cement as India’s fastest-growing and the world’s “greenest” cement producer. Whereas flagging its higher-than-peer valuations—32x EV/EBITDA versus the 23x business common—it backed the IPO on long-term progress, sustainability credentials, and JSW Group synergies.
AUM Capital Analysis cited management in Floor Granulated Blast Furnace Slag (GGBS) manufacturing, model power, and operational synergies.
SBI Securities had pointed to plans to greater than double capability to 60 million tonnes each year by the mid-2030s, including that profitability, hit by one-off losses, ought to enhance via value optimisation and new initiatives similar to Shiva Cement’s grinding unit in FY26.
Firm particulars and use of proceeds
JSW Cement, a part of the JSW Group, is a number one inexperienced cement maker with seven crops throughout India and an put in grinding capability of 20.6 million tonnes a 12 months. Its portfolio spans blended and atypical Portland cement, GGBS, clinker, and allied merchandise, supported by a community of over 4,600 sellers, 8,900 sub-dealers, and 158 warehouses.
Proceeds from the contemporary concern will assist fund a brand new built-in cement unit at Nagaur, Rajasthan, repay borrowings, and meet normal company wants. The supply on the market proceeds will go to current shareholders.
Regardless of profitability in FY23 and FY24, the corporate posted a loss in FY25, an element analysts say may weigh on near-term sentiment as traders watch whether or not JSW Cement can ship past its first buying and selling day.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions)
