JSW Cement made a quiet debut on the stock market on August 14 with its shares listing at a marginal premium to the issue price on the heels of a decent initial public offering (IPO). The stock listed at ₹153.50 on the NSE, a 4.42% premium over the issue price of ₹147, and at ₹153 on the BSE, a 4% premium.
The debut was largely along expectations boiling in the grey market, where the shares had been trading at a 3% premium in the run-up to listing.
The ₹3,600 crore IPO which opened between 7 and 11 August, drew a healthy 7.77 times overall subscription. Institutional demand was the strongest as the portion set aside for qualified institutional buyers was booked 15.8 times, while non-institutional investors subscribed 10.97 times and retail investors 1.81 times.
The company plans to use the proceeds from the fresh issue to fund a new integrated cement plant in Nagaur, Rajasthan, repay debt, and meet general corporate needs. The sum of ₹2,000 crore which was raised through an offer for sale will be pocketed by existing investors including AP Asia Opportunistic Holdings, Synergy Metals Investments Holding, and State Bank of India, who sold shares in the OFS.
Following the listing, the Mumbai-headquartered company’s market capitalisation stands at ₹20,505 crore. Meanwhile, after the listing, the promoter stake in the cement company will go down from 78.61% to 72.33%.
Incorporated in 2009 under the helm of the diversified conglomerate, the JSW Group, JSW Cement is counted among the top three fastest-growing cement makers in India in terms of capacity and sales growth between FY15 and FY25, according to CRISIL, and ranks in the country’s top 10 by installed capacity.
Narendra Solanki, Head of Equity Research at Anand Rathi Shares and Stock Brokers, noted that JSW Cement’s strong position in green cement, synergies within the JSW Group, and capacity expansion plans support its long-term growth prospects. The company holds an 84% share of the domestic market for ground granulated blast-furnace slag (GGBS), a low-carbon alternative to conventional cement, aligning with India’s sustainable infrastructure goals.
While Thursday’s listing was subdued compared with more exuberant market debuts, the steady demand suggests investors are looking beyond the immediate market reaction, placing their bets on the company’s expansion strategy and its role in the infrastructure growth story.
