JSW Cement IPO opens for subscription today; GMP at 3%. Should you apply?

JSW Cement IPO opens for subscription today; GMP at 3%. Should you apply?

JSW Cement, a part of the diversified JSW Group, will open its Rs 3,600 crore IPO for subscription today. The issue, which includes a recent issue of Rs 1,600 crore and an offer-for-sale (OFS) of Rs 2,000 crore, will shut on August 11. The shares are priced within the vary of Rs 139–147 apiece and shall be listed on each NSE and BSE. A tentative itemizing date is about for August 14.

Retail buyers can bid for at least 75 shares. The IPO has attracted modest gray market exercise, with a current gray market premium (GMP) of three%, indicating muted itemizing expectations amid broader market volatility and issues round latest monetary efficiency.

Incorporated in 2009, JSW Cement is likely one of the fastest-growing cement producers in India by capability and gross sales quantity over the past decade.

The firm is India’s largest producer of Ground Granulated Blast Furnace Slag (GGBS), a by-product of metal manufacturing that has emerged as a sustainable different to conventional cement in infrastructure tasks. It holds an 84 % market share in this phase, supplying marquee tasks just like the Mumbai Coastal Road, Bengaluru Airport, and Mumbai Metro.

JSW Cement’s distinctive inexperienced focus — lowest CO2 emission depth among friends — is tied to its round financial system mannequin, which repurposes industrial by-products and makes use of alternate fuels like biomass, pharma waste, and plastic.
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Despite these strengths, the corporate’s financials have been uneven. Revenue in FY25 stood at Rs 5,813 crore, down barely from FY24, while EBITDA contracted to Rs 815 crore from Rs 1,035 crore. Most notably, the corporate slipped right into a internet lack of Rs 164 crore in FY25, following a revenue of Rs 62 crore in FY24. Margins also fell, with EBITDA margin all the way down to 13.78% from 16.94% a 12 months in the past.The firm attributes the FY25 loss to one-off gadgets and subsidiary underperformance. Yet, analysts notice that the issue is valued at 32x EV/EBITDA and 6x P/B — a premium to sector leaders like UltraTech and Shree Cement, which commerce at decrease EV/EBITDA multiples.Proceeds from the IPO shall be used to fund a new built-in cement unit in Nagaur, Rajasthan (Rs 800 crore), repay debt (Rs 520 crore), and for basic company functions.

Should You Subscribe?

Canara Bank Securities has issued a “Subscribe” ranking for the IPO. While the issue is attractively positioned across the inexperienced cement and infrastructure themes, short-term buyers could discover restricted upside given the high valuation, latest loss, and regulatory overhang involving promoter entities.

However, JSW Cement’s strong model affiliation, aggressive capability enlargement, and alignment with government-led infrastructure progress make it a compelling long-term play. Investors with average threat urge for food and a long-term horizon can contemplate subscribing.

(Disclaimer: Recommendations, options, views and opinions given by the specialists are their very own. These don’t signify the views of the Economic Times)

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