JSW Cement IPO Opens at ₹3,600 Cr Amid Weak Listing Sentiment

JSW Cement, a part of the diversified JSW Group, is set to launch its much-anticipated Initial Public Offering (IPO) on August 7, 2025, and close on August 11, 2025. The company plans to raise ₹3,600 crore, with a fresh issue worth ₹1,600 crore and an offer for sale (OFS) of ₹2,000 crore.

The IPO is structured as a Book Built Issue, with the price band set at ₹139 to ₹147 per equity share. With this pricing, the market capitalisation at the upper band is estimated to be ₹20,041.46 crore. The lot size is 102 shares, requiring a minimum investment of ₹14,994 for retail investors. High-Net-Worth Individuals (HNIs) need to invest in at least 14 lots, totaling 1,428 shares worth ₹2,09,916.

Despite its size and backing from the JSW Group, the IPO is drawing mixed responses from the market, especially given the flat Grey Market Premium (GMP) of ₹0, as updated on August 4, 2025.

Strong Parentage But Weak FY25 Performance

JSW Cement stands to benefit from intra-group synergies. It sources blast furnace slag from JSW Steel and power from JSW Energy, reducing input costs. The brand enjoys the reputation of the JSW Group, with established names like Mr. Sajjan Jindal and Mr. Parth Jindal at the helm.

However, the financial performance for FY25 paints a cautious picture:

• Revenue from Operations: ₹5,914.66 crore in FY25

• EBITDA: ₹716.85 crore in FY25

• Profit after Tax: Loss of ₹163.7 crore in FY25

These figures mark a significant dip from FY24 and FY23:

• FY24 Profit after Tax: ₹62 crore

• FY23 Profit after Tax: ₹104 crore

This deterioration in net profit is reflected in weak EPS figures. The pre-issue EPS is ₹ -1.16 and post-issue EPS is ₹ -0.84, which makes P/E inapplicable, as it's in the red. In contrast, the industry P/E stands at 60x, suggesting the IPO is fully priced or overvalued.

Key return metrics show a similar story:

• ROCE (FY24): 7.05%

• ROE (FY24): -6.90%

• RoNW: -4.85%

Use of Proceeds: Mixed Signals for Investors

JSW Cement intends to use the net proceeds for the following objectives:

1. ₹800 crore: Establish a new integrated cement unit at Nagaur, Rajasthan

2. ₹520 crore: Repayment or prepayment of outstanding borrowings

3. Remaining funds: General corporate purposes

The expansion into Rajasthan is strategic but carries execution and integration risks, especially at a time when earnings are under pressure.

IPO Allotment and Listing Timeline

• IPO Opens: August 07, 2025

• IPO Closes: August 11, 2025

• Allotment Date: August 12, 2025

• Tentative Listing: August 14, 2025 on BSE and NSE

To check the allotment status, investors can:

• Visit the KFin Technologies registrar site

• Select JSW Cement IPO from the dropdown

• Enter Application No. / PAN / DP Client ID

• Submit to view allotment

GMP and Market Sentiment

The Grey Market Premium (GMP) is ₹0, which means the expected listing price is equal to the issue price. GMP is often seen as an early indicator of listing gains or losses. A flat GMP suggests that investor enthusiasm is muted, and short-term listing gains are unlikely.

Market experts are cautious, saying:

“Flat GMP, negative EPS, and a weak FY25 make this IPO a hold-off for listing gain chasers.”

Book Running Lead Managers (BRLMs)

JSW Cement’s IPO is managed by a consortium of major investment banks, including:

• JM Financial Limited

• Axis Capital Limited

• Citigroup Global Markets India

• DAM Capital Advisors Limited

• Goldman Sachs India Securities

• Jefferies India Private Limited

• Kotak Mahindra Capital

• SBI Capital Markets Limited

The registrar for the issue is KFin Technologies Limited.

Analyst Verdict: Should You Subscribe?

While JSW Cement enjoys:

• A strong promoter pedigree

• Synergies within the JSW ecosystem

• Strategic expansion plans

It is weighed down by:

• Recent losses and negative EPS

• Flat GMP

• Lack of immediate profitability

For long-term investors, JSW Cement may offer value if they believe in the cement growth story and JSW’s ability to turn around. However, for listing gains, most analysts suggest giving it a miss.

Final Recommendation: AVOID for Listing Gains

In summary, unless you're a long-term investor betting on the JSW brand and sector growth, the current market sentiment, GMP trend, and financials do not support entry at this valuation. As of now, JSW Cement IPO is best avoided for short-term gains.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, ANB Metal Cast.

The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Highway Infrastructure.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.