JSW Cement IPO Closes 8x Subscribed, GMP Slips

The ?3,600 crore JSW Cement IPO closed on August 11, receiving bids for nearly 141 crore shares—about 8 times the offer size. QIBs subscribed their quota nearly 16x, NIIs about 11x, and retail investors around 2x.

The IPO included a ?1,600 crore fresh issue and a ?2,000 crore offer for sale, priced at ?139–147 per share. At the upper band, the company is valued at ?20,000 crore. Investors could apply for a minimum of 102 shares (~?15,000 investment). Allotment is expected on August 12, with listing on August 14.

Grey Market Premium (GMP):
The GMP fell to 3.4% (~?152) from 6% earlier, according to Investorgain; IPO Watch estimated 4% (?153).

Use of Proceeds:

• Up to ?800 crore for a new integrated cement unit at Nagaur, Rajasthan

• Up to ?520 crore for partial or full loan repayment

• General corporate purposes

Analyst Views:

• Lemonn Markets: Suitable for long-term, high-risk investors; short-term gains uncertain due to high valuations and earnings pressure.

• Angel One: Neutral—valuations high (EV/EBITDA 30×), FY25 net loss, warrants caution.

• Choice Broking: Subscribe for long term; near-term profitability could be weak due to expansion, but long-term growth prospects are strong.

JSW Cement raised ?1,080 crore from 52 institutional investors via anchor placement on August 6, including nine domestic mutual funds.

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