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JSW Cement IPO: Price Band, Financials, Business Outlook, GMP — All You Need To Know

JSW Cement IPO: A detailed summary of JSW Group's latest offering that is set to open on Thursday, Aug. 7.

jsw cement IPO
JSW Cement will be the sixth company from billionaire Sajjan Jindal-led JSW Group to be listed on the stock market. (Image NDTV Profit)

The initial public offering of JSW Cement Ltd., which opens on Thursday, Aug. 7, aims to raise up to Rs 3,600 crore. Bidding will close on Monday, Aug. 11.

Shares will be offered in the range of Rs 139-Rs 147 apiece. JSW Cement aims to raise up to Rs 1,600 crore via a fresh issue, while existing shareholders, including State Bank of India, will sell shares via an offer for sale aggregating up to Rs 2,000 crore.

On the upper price band, JSW Cement is valued at Rs 19,564 crore. It will be the sixth company from billionaire Sajjan Jindal-led JSW Group to be listed on the stock market. The last one was JSW Infrastructure Ltd., which went public in October 2023.

The company will invite institutional bids in the pre-IPO anchor round on Aug. 6.

The tentative date of allotment of shares to IPO investors will be Aug. 12 and the stock will list on the bourses on Aug. 14.

In August 2024, JSW Cement filed preliminary IPO papers with SEBI, and later in September, the regulator kept the company's proposed initial share sale on hold. The go-ahead for the IPO was received in January.

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IPO Details

  • Issue opening: Aug. 7 - Aug. 11

  • Issue Price: Rs 139-Rs 147

  • Fresh Issue:  Rs 1,600 crore

  • OFS: Rs 2,000 crore 

  • Total Issue Size: Rs 3,600 crore

  • Market value at upper end of price band: Rs 19,565.30 crore

  • Lot Size: 102 shares

Use Of Proceeds/ OFS Details

JSW Cement will utilise Rs 800 crore from the fresh issue to partly finance a new integrated cement unit at Nagaur, Rajasthan, and Rs 520 crore for repayment of debt.

As part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, will be offloading shares worth Rs 932 crore, Synergy Metals Investments Holding Ltd will sell shares worth Rs 938 crore, and State Bank of India will divest shares valued at Rs 130 crore.

Synergy Metals Investments Holding is an arm of Synergy Metals and Mining Fund, a private equity fund set up in 2015 by Sudhir Maheshwari, a former executive of steelmaker ArcelorMittal.

The proceeds from the OFS will go to the selling shareholders and not to JSW Cement.

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Financials

In FY25, revenue from operations fell 3.6% to Rs 5,813 crore, while it slipped into a net loss of Rs 164 crore compared to a profit of Rs 62 crore the previous year. On the operating front, the margin squeezed from 15.48% to 12.28%.

As of March 2025, JSW Cement had an installed grinding capacity of 20.60 million metric tonne per annum, comprising 11 MMTPA in the southern region, 4.5 MMTPA in the western region, and 5.1 MMTPA in the eastern region of India, as per the offer documents.

Positive Vs Negative

JSW Cement's key weakness is the loss reported in FY25 as well as contraction in operating margin.

The EV/Ebita multiple — a financial ratio used to assess a company's value relative to its operational cash flow — is 21.8, much higher than larger rivals like ACC Ltd. (9.1), Ambuja Cements Ltd. (17.1) and UltraTech Cement Ltd. (20.1). This suggests that the valuations are expensive compared to other cement manufacturers.

On the other hand, what benefits JSW Cement are its strategically located plants that are well-connected to raw material sources and key consumption markets. The company also has long-term sourcing arrangements for blast furnace slag with JSW Steel Ltd. and limestone mines.

The company is India’s largest manufacturer of ground granulated blast furnace slag, an eco-friendly product produced entirely from blast furnace slag (a by-product of the steel manufacturing process), with a market share in terms of GGBS sales of 84% in FY25, according to the CRISIL Report.

The cement-maker benefits from its strong corporate lineage of the JSW Group and its qualified management team.

JSW Cement is undertaking greenfield and brownfield expansion plans across India, including in the north and central regions, to increase installed grinding capacity to 41.85 MMTPA and clinker capacity to 13.04 MMTPA, and create a pan-India footprint.

JSW Cement GMP

The latest grey market premium of JSW Cement IPO is Rs 14. With the price band of Rs 147, the stock's estimated listing price is seen at Rs 161, according to Investorgain. This implies a 9.52% premium.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

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