The JSW Cement initial public offering (IPO), open for subscription from August 7 to August 11, has been subscribed 56% overall as of the second day. Retail investors have booked 72% of their allotted quota, non-institutional investors (NIIs) 62%, and qualified institutional buyers (QIBs) 24%.
Of the total issue, 50% is reserved for QIBs, at least 15% for NIIs, and a minimum of 35% for retail investors.
Founded in 2009, JSW Cement ranks among the top 10 cement manufacturers in India by installed capacity and sales volume as of March 31, 2025, and is one of the three fastest-growing cement producers in the country between FY2015 and FY2025, according to CRISIL.
Subscription Trends
On the first day, the IPO saw an overall subscription of 32%, with the retail portion booked at 41%, NIIs at 23%, and QIBs at 23%.
Grey Market Premium (GMP)
In the grey market, JSW Cement shares are trading at a premium of ₹9.5 over the issue price of ₹147, implying an estimated listing price of ₹156.5—a 6.46% increase. Over the past seven sessions, the GMP has ranged from ₹0 to ₹19, with recent trends indicating upward momentum.
Issue Structure
The price band is set at ₹139–₹147 per share, valuing the company at around ₹20,000 crore at the upper end. The IPO includes a fresh issue of ₹1,600 crore and an offer for sale (OFS) of ₹2,000 crore by existing shareholders, including Apollo Management (via AP Asia Opportunistic Holdings Pte Ltd), Synergy Metals Investments Holding Ltd, and the State Bank of India.
Proceeds from the fresh issue will be allocated as follows:
- ₹800 crore for partially funding a new integrated cement plant in Nagaur, Rajasthan
- ₹520 crore for debt repayment
- The remaining balance for general corporate purposes
Analyst Views
Market analysts note that JSW Cement’s backward integration within the JSW Group, strategically located plants, strong distribution network, and raw material security position it well to benefit from the growing demand for sustainable infrastructure.
Some brokerage recommendations suggest the IPO is suitable for risk-averse investors seeking long-term exposure to the cement sector, particularly those interested in companies aligned with ESG (environmental, social, governance) practices. Others highlight the company’s leading position in producing Ground Granulated Blast Furnace Slag (GGBS) and the advantages of the JSW Group brand.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to subscribe to the IPO. Investors should consult their financial advisors and carefully review official documents such as the red herring prospectus before making any investment decisions.
