JSW Cement Makes 4% Premium Debut, IPO Subscribed 8.22×

JSW Cement Limited, the cement manufacturing arm of the JSW Group, made a steady debut on BSE and NSE on August 14, 2025. After closing its IPO bidding between August 7-11, 2025, the company commenced trading with a modest 4% premium at ₹153, aligning with market expectations and reflecting cautious investor sentiment towards the cement sector.

JSW Cement Listing Details

JSW Cement Limited launched its IPO at ₹147 per share with a minimum investment of 102 shares costing ₹14,994. The IPO received a strong response with a subscription of 8.22 times - QIB leading at 16.71 times, NII at 11.60 times, and retail investors at 1.91 times, indicating solid institutional interest despite moderate retail participation in the cement manufacturing business

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First-Day Trading Performance Outlook

Listing Price: The JSW Cement share price opened at ₹153 on both BSE and NSE, representing a premium of 4% from the issue price of ₹147, with NSE listing slightly higher at ₹153.50, delivering steady gains for investors and meeting market expectations.

Growth Drivers and Challenges

Growth Drivers:

Strategic Expansion Plans: Establishing a new integrated cement unit at Nagaur, Rajasthan, which will significantly add to the company's production capacity and revenue streams, enhancing market position in northern India.

Market Leadership Position: India's largest manufacturer of GGBS and among the fastest-growing cement companies in terms of installed grinding capacity and sales volume, providing competitive advantages.

Extensive Distribution Network: Well-connected distribution network comprising 4,653 dealers, 8,844 sub-dealers, and 158 warehouses as of March 31, 2025, ensuring strong market reach across India.

Environmental Leadership: Lowest carbon dioxide emission intensity among peer cement manufacturing companies and top global cement manufacturers, positioning the company well for sustainable growth initiatives.

Challenges:

Recent Financial Performance: Revenue declined by 3% and PAT dropped significantly by 364% in FY25, raising concerns about operational efficiency and market conditions affecting profitability.

High Debt Burden: Debt-to-equity ratio of 0.98 with total borrowings of ₹6,166.55 crore, creating financial leverage concerns and affecting cash flow generation capabilities.

Negative Profitability: Loss after tax of ₹163.77 crore in FY25 compared to profit of ₹62.01 crore in FY24, indicating operational challenges in the current market environment.

Cyclical Industry Nature: The Cement industry's dependence on infrastructure development and economic cycles exposes the company to market volatility and demand fluctuations.

Utilisation of IPO Proceeds

Capacity Expansion: ₹800 crore for part-financing the establishment of a new integrated cement unit at Nagaur, Rajasthan, enhancing production capabilities and market presence.

Debt Reduction: ₹520 crore for prepayment or repayment of outstanding borrowings, improving the capital structure and reducing financial leverage burden.

General Corporate Purposes: ₹226.80 crore for general corporate purposes supporting business operations and strategic initiatives in the cement manufacturing sector.

Financial Performance of JSW Cement

Revenue: ₹5,914.67 crore for FY25, showing a decline of 3% from ₹6,114.60 crore in FY24, reflecting challenging market conditions in the cement industry.

Net Profit: ₹163.77 crore in FY25, representing a significant deterioration from a profit of ₹62.01 crore in FY24, indicating operational challenges and market pressures.

Financial Metrics: Negative ROE of -6.90%, ROCE of 7.05%, debt-to-equity ratio of 0.98, negative RoNW of -4.85%, negative PAT margin of -2.77%, EBITDA margin of 13.78%, Price to Book Value of 6.16, and market capitalisation of ₹20,041.46 crore.