JSW Cement IPO opens: Analyst bet on growth potential; should you apply?

JSW Cement IPO opens for subscription: The initial public offering (IPO) of JSW Group’s cement manufacturing company, JSW Cement, opens for public subscription today, Thursday, August 7.

 

At the upper end of the price band, the company aims to raise ₹3,600 crore from the public offering. Ahead of the opening of the offering, JSW Cement successfully raised ₹1,080 crore from anchor investors in a bidding that concluded on Wednesday, August 7.

 

The anchor portion saw participation from both domestic and foreign institutional investors, including Nomura, the Government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Investment Fund, Goldman Sachs (Singapore) Pte, and the Kuwait Investment Authority.

 

 

That said, analysts remain broadly optimistic about JSW Cement and have shared favorable reviews for its public offering. However, before we delve into the their views, here are the key details of the JSW Cement IPO:

JSW Cement IPO structure

JSW Cement's IPO is a book-built issue that consists of a fresh issue of 108.8 million shares worth nearly ₹1,600 crore, along with an offer for sale (OFS) where State Bank of India (SBI), AP Asia Opportunistic Holdings, and Synergy Metals Investments Holding will divest up to 136.1 million equity shares worth ₹2,000 crore.

 

JSW Cement has reserved up to 50 per cent of the net offer for qualified institutional buyers (QIBs), at least 35 per cent for retail investors, and at least 15 per cent for non-institutional investors (NIIs).

JSW Cement IPO price band, lot size

The public issue of JSW Cement is available at a price band of ₹130-147 per share, with a lot size of 102 shares. Investors can bid for a minimum of 102 shares of the JSW Cement IPO and in multiples thereof.

 

A retail investor would require a minimum of ₹14,994 to bid for one lot of the JSW Cement IPO, and a maximum of 13 lots (1,326 shares) with an investment amount of ₹1,94,922.  Check All Time Plastics IPO GMP today 

JSW Cement IPO grey market premium (GMP)

Ahead of the opening of the public issue, the unlisted shares of JSW Cement were commanding a decent premium in the grey market. Sources tracking unofficial market activities revealed that JSW Cement shares were trading at around ₹153 per share, reflecting a grey market premium (GMP) of ₹6 or 4.08 per cent over the upper end of the issue price.

JSW Cement IPO allotment date, listing date

The three-day subscription window for the JSW Cement IPO is set to close on Monday, August 11. Following the closure of the subscription window, the basis of allotment for JSW Cement IPO shares is likely to be finalized on Tuesday, August 12. The successful allottees will receive the company’s shares in their demat account on Wednesday, August 13.

 

Shares of JSW Cement are expected to make their debut on the BSE and NSE on Thursday, August 14.

JSW Cement IPO registrar, lead managers

KFin Technologies serves as the registrar for the public issue, while Axis Capital, JM Financial, Citigroup Global, DAM Capital, Goldman Sachs (India), Jefferies India, Kotak Mahindra Capital, and SBI Capital Markets are the book-running lead managers.

JSW Cement IPO objective

JSW Cement will not receive any proceeds from the offer for sale (OFS); those proceeds will go to the shareholders divesting their stakes. However, the company intends to use the proceeds from the fresh issue for part-financing the cost of establishing a new integrated cement unit in Nagaur, Rajasthan, as well as for the repayment, in full or part, of certain outstanding borrowings. The company also plans to deploy the proceeds for general corporate purposes.

Should You Subscribe to the JSW Cement IPO?

Canara Bank Securities – Subscribe

Analysts at Canara Bank Securities recommend investors subscribe to the public issue, citing its growth potential, sustainability focus, and strategic alignment within the JSW Group.

 

Analysts highlighted that over FY23 to FY25, the company showed financial volatility, with revenues fluctuating between ₹5,836–₹6,028 crore, and posted a net loss of ₹163 crore in FY25 due to non-recurring items and weak subsidiary performance. Operating as a price taker, its top-line growth remained muted.

 

"Valuations appear stretched at 32x EV/Ebitda and 6x PB, above peer averages of 23x EV/Ebitda and 4x PB. However, it stands out as India’s fastest-growing and the world’s greenest cement producer, backed by strong synergies with JSW Steel," said the analyst in its report. 

Anand Rathi Research: Subscribe for long-term

Analysts at Anand Rathi Research have recommended subscribing to the public offering of JSW Cement from a long-term investment perspective.

 

On the valuation front, the analysts highlighted that based on annualised FY25 earnings, a post-issue market capitalisation of approximately ₹20,041.5 crore, and the upper price band of ₹147, the offer is valued at around 36.7 times post-IPO EV/EBITDA (FY25). This makes the issue appear aggressively priced.

 

However, the analysts remain optimistic due to JSW Cement’s strong brand presence, its core focus on expanding the GGBS (Ground Granulated Blast-furnace Slag) product line, particularly in the northern region, and its strategic growth plans to increase grinding capacity. Additionally, improvements in supply and distribution efficiency, along with the company’s alignment with India’s sustainable infrastructure development goals, are expected to support long-term profitability and returns.

AUM Capital – Subscribe

Analysts at AUM Capital also recommend that investors subscribe to the public issue, citing the strong branding of the JSW Group as an added advantage in terms of financial flexibility and operational synergies.

 

The analysts emphasised that 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," they noted.

About JSW Cement

A part of the JSW Group, JSW Cement is one of the top three fastest-growing cement manufacturing companies in India in terms of growth in installed grinding capacity and sales volume from FY 2015 to FY 2025. The company is among the top 10 cement companies in India in terms of installed capacity and sales volume as of March 31, 2025.

 

JSW Cement primarily manufactures and sells various types of cementitious products, including blended cement (PSC, PCC, PPC), OPC, and GGBS. It also produces and sells clinker and a range of allied products such as RMC, screened slag, construction chemicals, and waterproofing compounds. The products are manufactured across seven plants in the southern, western, and eastern regions of India, as well as a clinker unit in the UAE. These products are used in the construction of homes (small-scale projects) as well as large-scale infrastructure projects like highways, dams, metros, and bridges.