JSW Cement IPO: An Ambitious Entry from JSW Group but Should You Invest?

JSW Cement, a part of the ₹1.75 trillion JSW Group conglomerate, has launched its ₹3,600 crore Initial Public Offering (IPO) from August 7 to August 11, 2025. With a price band of ₹139 to ₹147 per equity share, the IPO comprises a fresh issue worth ₹1,600 crore and an Offer for Sale (OFS) of ₹2,000 crore, making it one of the biggest IPOs of the year in the cement sector.

Despite being backed by one of India's most respected industrial houses and visionary promoters like Sajjan Jindal and Parth Jindal, the IPO has not stirred excitement in the grey market. The Grey Market Premium (GMP) is ₹0, implying no listing gain expectation.

Let’s examine the details, performance, and outlook to understand whether the IPO deserves a spot in your portfolio.

IPO Details at a Glance

• IPO Size: ₹3,600 crore

• Fresh Issue: ₹1,600 crore (10.88 crore shares)

• Offer for Sale: ₹2,000 crore (13.60 crore shares)

• Price Band: ₹139 to ₹147

• Minimum Lot Size: 102 shares

• Retail Minimum Investment: ₹14,994

• HNIs Minimum Investment: 14 lots (₹2,09,916)

• Issue Opens: August 07, 2025

• Issue Closes: August 11, 2025

• Allotment Date: August 12, 2025

• Tentative Listing Date: August 14, 2025

• Stock Exchange: BSE and NSE

• Registrar: KFin Technologies Limited

• Book Running Lead Managers: JM Financial, Axis Capital, Citi, DAM Capital, Goldman Sachs, Jefferies, Kotak, SBI Capital Markets

Company Overview

JSW Cement manufactures Portland Slag Cement (PSC), Ordinary Portland Cement (OPC), and Ground Granulated Blast Furnace Slag (GGBFS). It leverages synergies from the JSW Group, especially by sourcing blast furnace slag from JSW Steel and power from JSW Energy, giving it a cost advantage.

It operates multiple plants across India and aims to expand capacity via IPO proceeds. The firm is planning a new integrated cement plant in Nagaur, Rajasthan, which will boost production and market access in North India.

Financial Performance

Here’s a snapshot of JSW Cement’s performance over the past 3 fiscal years:

Despite consistent revenue, profitability is on a decline, and FY25 shows a net loss of ₹163.77 crore. EBITDA margins have also contracted, pointing to rising costs or pricing pressures.

The Return on Net Worth (RoNW) and Return on Equity (ROE) are negative, and the Earnings Per Share (EPS) for FY24 is ₹-1.16 (pre-issue) and ₹-0.84 (post-issue), making it difficult to apply traditional valuation metrics like P/E Ratio.

Valuation and Comparison

• Post-issue Market Cap: ₹20,041.46 crore

• P/E Ratio: Not Applicable (due to negative EPS)

• Industry P/E: ~60x

In comparison to listed peers like Ultratech Cement, Shree Cement, Ambuja Cement, and JK Cement, JSW Cement appears expensive given its losses and slower growth. Those companies have healthy balance sheets, positive EPS, and strong return ratios.

Use of IPO Proceeds

JSW Cement plans to utilize funds as follows:

1. ₹800 crore for part-financing a new integrated cement unit in Nagaur, Rajasthan

2. ₹520 crore for repayment/prepayment of borrowings

3. Balance for general corporate purposes

This suggests a mix of expansion and balance sheet improvement, which is positive in the long term but may not translate into immediate returns for investors.

GMP and Market Sentiment

As of August 4, 2025, the Grey Market Premium (GMP) is ₹0, meaning no premium over issue price is expected in unofficial trading. This is not a favorable sign, especially when other IPOs have shown double-digit premiums.

Moreover, anchor investor enthusiasm is limited, and retail/HNI interest will play a big role in final subscription numbers.

Risks to Consider

• Negative profitability in FY25, weak earnings outlook

• High valuation without strong bottom-line growth

• Cement sector is cyclical, dependent on infrastructure spending and input cost volatility

• Stiff competition from established brands like Ultratech, Ambuja, Shree Cement

Expert Verdict: Avoid for Listing Gains

Though backed by a strong promoter group, JSW Cement’s current financials do not inspire confidence for short-term returns. The absence of listing premium and negative EPS make this IPO less attractive for listing gains.

Long-term investors with a high-risk appetite may track the company post-listing as the Nagaur project materializes, but retail investors looking for immediate profits should avoid this IPO.

How to Check JSW Cement IPO Allotment

To check allotment status on August 12, 2025, follow these steps:

1. Visit KFin Technologies IPO Allotment Page

2. Select “JSW Cement Limited” from the dropdown

3. Enter your PAN / DP ID / Application Number

4. Click submit to check if shares are allotted

   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.

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   The Current active IPO are ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, Highway Infrastructure.

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