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Today marks a significant milestone in the Indian stock market as JSW Cement makes its long-awaited debut in the market. After an incredible response during its subscription phase, all eyes are now on the stock's performance as it begins trading today, August 14, 2025.
The JSW Cement IPO received positive demand, as the issue was oversubscribed at 7.77x on closure. Demand was strongest from Qualified Institutional Buyers (QIBs), with their quota subscribed to 15.8x, and Non-Institutional Investors (NIIs) at 10.97x. At the same time, retail investors' interest was more subdued, with a subscription of just 1.81x.
The IPO consisted of part offer for sale (OFS) and part new issue, the proceeds of which will finance the expansion plan and turn debt into equity.
The issue price for the IPO was fixed to be between ₹139 and ₹147 per share. At a post-issue market capitalization of approximately ₹20,000 crore, JSW Cement intends to utilize the proceeds for expanding its cement capacity, particularly as the company is poised to provide a new plant in Nagaur, Rajasthan, which is expected to be a major growth driver in the future.
Currently, JSW Cement shares are available for trade on the grey market at a GMP of about ₹4.5, suggesting a listing price of ₹151.5 or approximately 3% above the issue price of ₹147. The GMP indicates positive investor interest in the company, but experts believe JSW Cement will not achieve high listing gains as some other high-profile IPOs have generated.
Harshal Dasani, Business Head of INVasset PMS, pointed out that while the IPO has considerable demand, it is likely that JSW Cement's initial listing will not have the significant listing gains as seen with other recent IPOs.
JSW Cement is priced at ₹147, suggesting that the company is valued at 36.7x EV/EBITDA multiple for FY25 above its peers Dalmia Bharat and JK Cement.
The green cement products, such as Portland Slag Cement (PSC) and Ground Granulated Blast Furnace Slag (GGBS), align with the company's sustainability commitments and goals for infrastructure development, which will provide long-term support for the company's growth.
Analysts, including DR Choksey, noted that while the company is well-positioned for growth, given its eco-friendly cement ambitions, the issue seems fully priced at current levels. A concentration of operations and capital intensity are some risks to consider.
Also Read: JSW Cement IPO Day 2: Subscription at 29%, Retail Investors Lead with 36%
Despite the cautious expectations, JSW Cement undoubtedly has an advantage in a growing sector for green infrastructure. Investors may not get a huge return on listing, but the long-term growth could find value in the stock.
Institutional investors' support may push the stock further due to the company's sustainable focus. JSW Cement is well-positioned for future growth, even if its listing debut may not break records.
