The initial public offering (IPO) of JSW Cement opened for subscription on Thursday, August 7, with the Sajjan Jindal-led company aiming to raise Rs 3,600 crore through a mix of fresh issue and offer-for-sale. The price band has been set at Rs 139–147 per share, and the issue will remain open till Monday, August 11. Shares are scheduled to list on the BSE and NSE on August 14.
Founded in 2006, the Mumbai-based cement maker is part of the JSW Group and has positioned itself as a leader in green cement manufacturing. As of March 2025, it operated seven plants with a combined installed grinding capacity of 20.6 million metric tonnes per annum (MMTPA). The company plans to use proceeds from the fresh issue to set up a new integrated cement unit in Nagaur, Rajasthan, repay debt, and fund general corporate purposes.
The IPO has already attracted strong institutional interest. JSW Cement raised Rs 1,080 crore from marquee anchor investors, including BlackRock, Nomura, UBS, Amundi, Morgan Stanley, the Government of Singapore, and the Abu Dhabi Investment Authority, among others.
For FY25, however, the company reported a net loss of Rs 163.77 crore on revenue of Rs 5,914.67 crore, following a profitable FY24 where it earned Rs 62.01 crore on Rs 6,114.60 crore in revenue. The company attributed the FY25 loss to one-off fair value adjustments, underperformance at certain subsidiaries, and investment-led cost pressures.
Despite the loss, the IPO values JSW Cement at a market capitalisation of over Rs 20,000 crore, and the issue is priced at a premium valuation—an EV/Ebitda multiple of 31–32x, higher than most listed cement peers.
SHOULD YOU SUBSCRIBE OR NOT?
Brokerages are mostly positive, though some advise caution due to the stretched valuation and inconsistent profitability.
Reliance Securities, Canara Bank Securities, Ventura Securities, and SMIFS have all recommended a ‘subscribe’, highlighting JSW Cement’s scale, ESG focus, and long-term positioning. Reliance called it a “differentiated, future-ready cement player” with strong visibility for growth in India’s infrastructure-led economy. Ventura believes the FY25 loss is transitory and expects a return to profitability in FY26, aided by scale and operational leverage.
AUM Capital also backed the issue, citing its ground granulated blast furnace slag (GGBS) advantage and strong parentage, while Lakshmishree Securities pointed to strategic raw material access and alignment with India’s sustainability goals.
Swastika Investmart, while recommending a ‘subscribe’, warned that “short-term returns could be volatile due to high valuation and current losses,” suggesting it may suit high-risk investors seeking long-term potential or minor listing gains.
Arihant Capital was more circumspect, assigning a ‘neutral’ rating. It flagged the high EV/Ebitda valuation and uneven financial track record, though it acknowledged JSW Cement’s cost efficiency and sustainability focus.
On the sector front, Rahul Ahluwalia, Founder-Director of the Foundation for Economic Development, said the main impact will be felt in “labour-intensive areas like apparel, gems, and jewellery,” especially if tariff pressures from the U.S. intensify.
Adding to near-term concerns, JSW Cement’s grey market premium (GMP) has slipped to Rs 6, down from Rs 15–20 earlier—indicating subdued listing expectations in the unofficial market.
Still, many analysts agree that JSW Cement’s brand strength, access to raw materials, and green positioning provide a strategic edge over peers, especially as cement demand rises in the wake of infrastructure and housing growth.
Therefore, as the situation stands, most brokerages lean toward a ‘subscribe’ with a long-term view, but conservative investors may prefer to wait for consistent profitability before entering.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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