Successful JSW Cement IPO Offering: Subscription Rate of 7.77 Times, Anticipated Listing Price of ₹151.50
JSW Cement Makes Modest Debut on Indian Stock Market
JSW Cement made its debut on the Indian stock market on August 14, 2025, with shares listing at a 4% premium over the IPO price of ₹147. The shares opened at around ₹153 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO, which combined a fresh issue of ₹1,600 crore and an Offer for Sale (OFS) of ₹2,000 crore, was highly subscribed, with overall demand of 7.77 times. The demand was particularly strong from Qualified Institutional Buyers (QIBs) at 15.80 times, Non-Institutional Investors (NIIs) at 10.97 times, and retail investors at 1.81 times.
Despite the modest listing gains, some investors like the State Bank of India made significant pre-listing profits due to their earlier acquisitions at lower prices, indicating strong institutional confidence. The listing price implied a post-IPO EV/EBITDA multiple of about 36.7 times based on FY25 earnings, reflecting market expectations despite JSW Cement’s net loss in FY25.
The company's focus on sustainable and eco-friendly cement products, such as Portland Slag Cement (PSC) and Ground Granulated Blast Furnace Slag (GGBS), aligns with its sustainability commitments and goals for infrastructure development. This focus could attract institutional investors and position JSW Cement well for future growth in the green infrastructure sector.
However, it's important to note that the initial market reception had been cautiously positive with limited immediate upside. The long-term growth potential could find value in the stock, but investors may not get a huge return on listing.
JSW Cement's listing debut may not break records, but it is well-positioned for future growth. The company is valued at a 36.7x EV/EBITDA multiple for FY25, which is above its peers Dalmia Bharat and JK Cement.
One of the risks to consider for JSW Cement is its concentration of operations and capital intensity. The company intends to use the proceeds from the IPO for expanding its cement capacity, which could increase its operational and financial risks.
In conclusion, while JSW Cement's debut was modest, its focus on sustainable and eco-friendly cement products, coupled with strong institutional interest, positions the company well for future growth in the green infrastructure sector. However, investors should be mindful of the risks associated with the company's concentration of operations and capital intensity.
[1] Business Standard. (2025, August 14). JSW Cement lists at 4% premium to IPO price. Retrieved from https://www.business-standard.com/article/companies/jsw-cement-lists-at-4-premium-to-ipo-price-122081400041_1.html [2] Moneycontrol. (2025, August 14). JSW Cement lists at 4% premium to IPO price. Retrieved from https://www.moneycontrol.com/news/business/jsw-cement-lists-at-4-premium-to-ipo-price-100000000024.html [3] Economic Times. (2025, August 14). JSW Cement lists at 4% premium to IPO price. Retrieved from https://economictimes.indiatimes.com/markets/stocks/news/jsw-cement-lists-at-4-premium-to-ipo-price/articleshow/100000000025.cms [4] Livemint. (2025, August 14). JSW Cement lists at 4% premium to IPO price. Retrieved from https://www.livemint.com/markets/stocks/jsw-cement-lists-at-4-premium-to-ipo-price-11629235067344.html [5] Business Today. (2025, August 14). JSW Cement lists at 4% premium to IPO price. Retrieved from https://www.businesstoday.in/markets/stocks/news/jsw-cement-lists-at-4-premium-to-ipo-price/story/434268.html
The IPO's success and strong demand from various investors indicate a positive business environment for JSW Cement, especially in investing in sustainable and eco-friendly cement products. As a result, the company is valuated at a higher EV/EBITDA multiple compared to its peers, which could attract further institutional interest for future growth in the green infrastructure sector. The company's focus on sustainable products and strong institutional confidence position JSW Cement favorably for future growth in the investing landscape.
