NEW DELHI: JSW Cement, part of JSW Group, made its market debut at Rs 153 a piece on Thursday, marking a modest gain of around 4% over its issue price of Rs 147. The shares were listed at Rs 153.5 per share on the NSE, a premium of 4.42% over the issue price. On the BSE, the shares were listed at Rs 153 per share, a premium of 4.08%.
Following the listing, the total market capitalisation of the company stood at nearly Rs 21,000 crore.
The mainboard IPO had garnered a decent interest in the market as the Rs 3,600-crore issue was subscribed 7.77 times. It received bids for 1,40,91,39,588 shares against 18,12,94,964 shares on offer. The QIB quota was subscribed 15.80 times while NII was booked 10.97 times. The retail portion was subscribed 1.81 times.
According to the draft papers, JSW Cement will utilise proceeds worth Rs 800 crore to part-finance a new integrated cement unit at Nagaur, Rajasthan, and Rs 520 crore for payment of debt and the remaining funds for general corporate purposes.
Shivani Nyati, Head of Wealth at Swastika Investmart, said that the company ranks among the top 10 cement producers in India and is actively expanding its presence across the country through greenfield and brownfield projects, with the aim of doubling its grinding capacity.
“However, its revenue growth and profit after tax have shown inconsistency over the past three years. Being in a growth phase, the company’s high valuation and current losses could lead to short-term volatility in returns. Investors who entered the public offering for listing gains are advised to maintain a stop loss at ₹138 and wait for potential upside, while those with a medium- to long-term perspective may consider holding the stock for future growth,” added Nyati.
Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said JSW Cement has a competitive edge through its focus on environmentally friendly “green” cement. The company is the country’s largest manufacturer of ground granulated blast-furnace slag (GGBS) with an 84 percent market share.
"Based on annualised FY25 earnings, a post-issue market capitalisation of about Rs 20,041.5 crore, and at the upper price band of Rs 147, the offer is valued at around 36.7 times post-IPO EV/EBITDA (FY25), making it appear aggressively priced. We believe JSW Cement’s synergies with the JSW Group, strategic plant locations, GGBS focus, capacity expansion, efficient distribution network, and alignment with India’s sustainable infrastructure push position it for long-term profitability. Therefore, investors may consider holding the stock for the long term post listing," Solanki said.