By Chaitanya
BBA Finance Graduate & 6+ Years of Experience in Stock Market & Finance
The highly anticipated initial public offering (IPO) of JSW Cement, a key entity within the Sajjan Jindal-led JSW Group, is set to open for subscription tomorrow, August 7, 2025. This public offering, valued at Rs 3,600 crore, presents a significant opportunity for investors looking to tap into India’s evolving infrastructure story, despite some recent financial challenges faced by the company.
Key Details of the Public Offering
The JSW Cement IPO will run from August 7 to August 11, 2025. The total offer size has been adjusted to Rs 3,600 crore, comprising a fresh issue of equity shares worth Rs 1,600 crore and an Offer for Sale (OFS) of Rs 2,000 crore by existing shareholders. The price band for the shares has been set at Rs 139 to Rs 147 per share. Investors can expect the allotment finalisation by August 12, with shares credited to demat accounts by August 13. Listing on both the BSE and NSE is slated for August 14, 2025.
| Description | Details |
|---|---|
| Company | JSW Cement (part of JSW Group) |
| IPO Size | Rs 3,600 crore |
| Fresh Equity Issue | Rs 1,600 crore (10.88 crore shares) |
| Offer for Sale (OFS) | Rs 2,000 crore (13.61 crore shares) |
| Price Band | Rs 139 to Rs 147 per share |
| Face Value per Share | Rs 10 |
| Listing Exchanges | BSE and NSE |
| Lead Manager | JM Financial Ltd. |
| Registrar | KFin Technologies Ltd. |
Key Dates Of JSW Cement IPO
| Event | Date |
|---|---|
| IPO Opens | August 7, 2025 |
| IPO Closes | August 11, 2025 |
| Cut-off Time for UPI Mandate | August 11, 2025, 5:00 PM |
| Allotment Finalization | August 12, 2025 |
| Refunds Initiated | August 13, 2025 |
| Shares Credited to Demat | August 13, 2025 |
| Listing on BSE & NSE | August 14, 2025 |
JSW Cement: A Look at the Company’s Strengths
JSW Cement positions itself as India’s fastest-growing cement manufacturer among the top ten companies in terms of installed capacity. As of March 2024, its grinding capacity stood at an impressive 20.60 million metric tonnes per annum (MMTPA), with ambitious plans to almost double this to 40.85 MMTPA. The company boasts a robust presence across Southern, Western, and Eastern India, with seven operational plants in India and one in the UAE. These include major facilities at Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra), alongside a clinker unit operated via its subsidiary, Shiva Cement, in Odisha.
A notable strength lies in JSW Cement’s leadership in green cement and eco-friendly products. The company commands an 82.7% market share in Ground Granulated Blast Furnace Slag (GGBS), reflecting its commitment to sustainability. Its operations maintain a low clinker-to-cement ratio of 46.6%, significantly contributing to a reduced carbon footprint. Furthermore, the company benefits from strategic limestone reserves of 1,098.88 million metric tonnes (MMT), ensuring long-term raw material security. A widespread distribution network, as of March 31, 2025, comprises 4,653 dealers, 8,844 sub-dealers, 158 warehouses, and 6,559 direct retail outlets, bolstering its market reach.
Lot Size For IPO Application
| Investor Category | Lot Size (Shares) | Approximate Investment at Upper Price Band (Rs) |
|---|---|---|
| Retail Investors | 102 shares (1 lot) | Rs 14,178 |
| Small HNI (sNII) | 14 lots (1,428 shares) | Rs 2,09,916 |
| Big HNI (bNII) | 67 lots (6,834 shares) | Rs 10,04,598 |
Navigating Recent Financial Headwinds
While JSW Cement exhibits strong operational fundamentals, its recent financial performance has shown some volatility. For the financial year 2025, the company reported a total income of Rs 5,914.67 crore but posted a net loss of Rs 163.77 crore. This contrasts with previous years, where it recorded a net profit of Rs 62.01 crore on a total income of Rs 6,114.60 crore in FY 2024, and Rs 104.04 crore net profit on Rs 5,982.21 crore total income in FY 2023. The EBITDA for FY 2025 also saw a decline to Rs 815.32 crore from Rs 1,035.66 crore in FY 2024, primarily due to compressed margins and falling cement prices that impacted the entire industry. Consequently, the Earnings Per Share (EPS) for FY 2025 turned negative at -1.16, down from 0.90 in FY 2024 and 1.37 in FY 2023.
| Financial Year | Total Income (Rs crore) | Net Profit / (Loss) (Rs crore) | EBITDA (Rs crore) | Earnings Per Share (EPS) | Comments |
|---|---|---|---|---|---|
| FY 2025 | 5,914.67 | (163.77) | 815.32 | (1.16) | Net loss due to compressed margins and falling cement prices; high debt; IPO planned |
| FY 2024 | 6,114.60 | 62.01 | 1,035.66 | 0.90 | Profit with higher income and EBITDA |
| FY 2023 | 5,982.21 | 104.04 | Not specified | 1.37 | Strong profit and EPS |
The company currently carries high debt, but it anticipates significant debt reduction through the proceeds from this IPO and planned refinancing efforts, with an interest coverage ratio around 2.50x. JSW Cement’s substantial capital expenditure (capex) plans are largely contingent on the success of this IPO, as it aims to reduce its overall leverage in the medium term. As part of its FY 2025 strategy to improve liquidity, the company is also unlocking investments worth Rs 326 crore.
Market Sentiment and Outlook
The Grey Market Premium (GMP) for JSW Cement’s shares before the IPO subscription opened hovered around Rs 8 per share, suggesting an approximate 5.44% listing gain over the upper price band. However, market analysts have noted a decline in GMP from an earlier estimate of around 12% earlier in the week. The broader cement sector has faced subdued demand growth in FY 2025, with volatile fuel costs exerting pressure on margins industry-wide. Despite these sector-specific challenges, the overall Indian IPO market continues to show strong resilience, particularly driven by positive investor sentiment towards the technology and healthcare sectors, which could provide a favourable environment for JSW Cement’s offering.
JSW Group’s diverse interests across steel, energy, infrastructure, paints, sports, and venture capital, lend an element of stability and strategic backing to JSW Cement.
In Conclusion
The JSW Cement IPO offers investors a chance to invest in a rapidly expanding cement company with a strong focus on sustainability and strategic raw material security. While the company has navigated a challenging FY 2025 with a net loss, its long-term vision, significant capacity expansion plans, and leadership in green cement position it uniquely in the market. The success of this JSW Cement IPO will be crucial for its future growth trajectory and debt reduction strategies. Potential investors are advised to review the offer document thoroughly. Post-allotment, which is expected by August 12, you can check your allotment status on the registrar and stock exchange websites.
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