JSW Cement IPO Overview
JSW Cement, a part of the renowned JSW Group, has launched its ₹3,600 crore IPO comprising a fresh issue of ₹1,600 crore and an offer for sale of ₹2,000 crore. The price band is set between ₹139 and ₹147 per equity share, and the IPO subscription period runs from 7th August to 11th August 2025. The lot size for retail investors is 102 shares, requiring a minimum investment of ₹14,994.

The company will list on BSE and NSE, with a tentative listing date of 14th August 2025. The market capitalisation at the upper price band of ₹147 per share is projected to be ₹20,041.46 crore.

Company Profile & Group Synergies

JSW Cement benefits from being part of the JSW Group, a diversified conglomerate with operations in steel, energy, infrastructure, defence, real estate, paints, sports, and more. This connection offers strategic advantages such as access to blast furnace slag from JSW Steel and power supply from JSW Energy, helping optimise operational costs.

The strong JSW brand name, coupled with the guidance of promoters Sajjan Jindal and Parth Jindal, adds credibility. The management team’s industry experience supports the company's growth ambitions.

Financial Performance Analysis

While the company has shown steady revenues over recent years, profitability remains inconsistent.

• Revenue from operations:

  • FY25: ₹59,146.65 million

  • FY24: ₹61,145.96 million

  • FY23: ₹59,822.09 million

• EBITDA:

  • FY25: ₹7,168.50 million

  • FY24: ₹9,373.39 million

  • FY23: ₹8,082.77 million

• Profit After Tax (PAT):

  • FY25: ₹-1,637.69 million (loss)

  • FY24: ₹620.13 million (profit)

  • FY23: ₹1,040.38 million (profit)

The loss in FY25, combined with declining EBITDA, raises concerns about operational efficiency.

Valuation Metrics

The pre-issue EPS is -1.16, and post-issue EPS is -0.84 for FY24, making the P/E ratio not applicable. In contrast, the industry P/E stands at 60x.
Key return ratios:

• ROCE: 7.05%

• ROE: -6.90%

• RoNW: -4.85%

These figures indicate that while the company has a strong brand, returns are currently under pressure.

IPO Subscription & Anchor Investment

As of 11:00 AM on 11th August 2025, the subscription status stands at 0.43 times on the final day — signalling muted interest from investors.

The company has, however, secured ₹1,079.99 crore from anchor investors at ₹147 per share, allocating 7,34,69,386 equity shares to them.

Grey Market Premium (GMP)

The GMP for JSW Cement IPO is currently ₹0, indicating no premium in the unofficial market. This suggests investors are cautious, and there are no strong listing gain expectations.

Investment Recommendation

Given the zero GMP, low subscription numbers, recent losses, and fully priced valuation, the JSW Cement IPO appears unattractive for short-term listing gains.
Recommendation: Avoid for listing gains. Long-term investors may consider it only after watching post-listing performance and improvement in profitability.

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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