JSW Cement IPO booked nearly 3x on day 3 so far, GMP falls sharply

The initial public offering (IPO) of JSW Cement managed to sail through during the third and last day of the bidding process from all the categories of the investors. The issue was overall booked nearly 30 per cent on day one and was booked nearly half as of second days of the bidding.

Mumbai-based JSW Cement is aiming to raise approximately Rs 3,600 crore. The IPO includes a fresh issue of shares worth Rs 1,600 crore and an offer-for-sale (OFS) of up to Rs 2,000 crore. Investors can apply for a minimum lot of 102 shares within a price band of Rs 139-147 per share. The shares are scheduled to list on the BSE and NSE on August 14.

According to the data, the investors made bids for 49,37,28,348 equity shares, or 2.72 times, compared to the 18,12,94,964 equity shares offered for the subscription by 2.00 pm on Monday, August 11, 2025. The three day bidding for the issue, which kicked off on Thursday, August 07, shall concludes today

The allocation for retail investors was subscribed 0.64 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 45 per cent. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for only 23 per cent as of the same time.

JSW Cement, a prominent player in the Indian cement industry, is known for its production of green cement. The company operates seven plants across the nation, with a total grinding capacity of 20.60 million metric tonnes per annum (MMTPA) as of March 31, 2025. However, the company reported a net loss of Rs 163.77 crore for the fiscal year ending March 2025, compared to a net profit of Rs 62.01 crore the previous year.

Despite the recent net loss, the company maintains a stable revenue base, recording Rs 5,914.67 crore in the latest fiscal year. The cement firm's market capitalisation is estimated at Rs 20,041.46 crore post-IPO. Analysts have highlighted the company's strong parentage and strategic growth plans as key advantages.

In the competitive landscape, JSW Cement's IPO is drawing mixed reactions in the grey market, with a premium of Rs 13-14 per share. This suggests potential listing gains of 8-9 per cent. The initial premium was Rs 19 when the price band was announced, indicating some fluctuation in investor sentiment due to market volatility.

Subscription details reveal that qualified institutional buyers (QIBs) have a 50 per cent reservation in the offering, while non-institutional investors (NIIs) and retail investors will have 15 per cent and 35 per cent allocations, respectively. The company has already secured Rs 1,080 crore through the anchor book route by allocating 7.34 crore equity shares at Rs 147 each.

Analysts recommend subscribing to the issue, citing "strong parentage, growth prospects, group synergies, decent financial track record and plans for expansion." However, they caution that "rich valuations and muted growth of the cement space" may present challenges.

JSW Cement is one of the fastest growing cement manufacturing companies in India in terms of installed grinding capacity and sales volume. Being the largest producer of ground granulated blast furnace slag (GGBS) gives it a competitive advantage, said AUM Capital. "Strong branding of JSW Group as a whole is an added advantage in terms of financial flexibility and operational synergies," it said with a 'subscribe' rating.

Although part of the IPO proceeds will go towards debt reduction, finance costs are expected to remain elevated given the capital-intensive expansion plans. From an industry perspective, FY25 was impacted by unseasonal rains and general elections, which weakened demand and pricing, however a recovery is anticipated going forward, said Indsec Research.

"JSW Cement is one of the fastest growing cement manufacturers over the past decade, holding a 3% market share and ranking among the top 10 players in India with a current installed capacity of 20.6 MTPA. Despite this improving outlook, the issue appears richly valued and leverage remains high, therefore we assign a 'subscribe for long term' rating," it added.