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JSW Cement, the established cement arm of the Sajjan Jindal‑led JSW Group, is set to launch its Rs. 3,600 crore IPO, which was initially planned to be Rs. 4,000 crore. This IPO lunch will consist of a fresh Rs. 1,600 crore issue and a Rs. 2,000 crore Offer For Sale by investors. This OFS part is scheduled to open for public subscription from August 7 to August 11.
The JSW share price remains stable despite fluctuations in the broader market. Reportedly, the OFS that is scheduled to open on August 7 will have a price range of Rs 139 to Rs 147 per share, which will take the total valuation of the company to Rs. 20,041 crore.
As per the current updates and reports, the IPO consists of two parts: a fresh issue of equity worth Rs. 1,600 crore, which marks the largest capital rise in the Indian cement sector in a decade. The next part is the OFS, worth Rs. 2,000 crore. It’s by the existing stakeholders, including Apollo’s AP Asia Opportunistic Holdings, Synergy Metals Investments, and the State Bank of India.
The institutional bid for the OFS will begin one day earlier on August 6, before the public window opens. Here’s the allocation reserve: 50% to Qualified Institutional Buyers, around 35% to retail, and 15% to non-institutional Institutional Investors. Grey‑market signals have surged post price announcement; GMP is trading at Rs. 20–21 per share, around a 13% premium over the IPO band.
Strong JSW cement sales figures for the quarter have boosted investor confidence ahead of the IPO. The final allotment list will be published on Tuesday, August 12 (tentatively), with the company initiating refunds on the next day. As per the reports, the shares will be credited to the demat accounts of the allottees on the same day following the refund.
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Analysts are closely watching the JSW Cement IPO rise as demand for infrastructure stocks continues to rise. A year ago, in August 2024, JSW Cement filed for an IPO, aimed at Rs. 4000 crore. However, the regulatory delays include SEBI’s hold in September. Overcoming all the hurdles, the final approval arrived in January 2025.
Following that, the company planned to deploy Rs. 800 crore from the fresh issue to partially finance one of its new plants at Nagaur, Rajasthan. It also paid a long-standing debt of Rs. 520 crore, leaving the balance toward general purposes. As of March 31, 2025, debt was reduced remarkably and stood at Rs. 6,166 crore.
JSW Cement currently operates seven plants with 20.6 MTPA capacity, planning to scale to 41.8 MTPA over the next 4–5 years. On a different note, the steel unit of the company and its Japanese partner, JFE Steel Corporation, have planned to invest Rs 5,845 crore to expand the manufacturing capacity of electrical steel in two of its plants to meet the required demand.
JSW Cement’s IPO marks a strategic milestone in both timing and structure. The Rs. 1,600 crore fresh issue is the largest in the cement industry in the last few years. Therefore, it highlights JSW’s confidence to scale capacity organically, rather than through acquisitions, even when fighting with giants like Adani, Birla, and UltraTech.
With fresh capital rising and letting the existing investors exit profitably, JSW aligns long-term operational growth with shareholder liquidity. Additionally, new units in Rajasthan and debt reduction will improve financial resilience.
However, execution risk still exists in Rajasthan, and sustaining organic growth capital requirements will be tough. Still, if things go as planned, the IPO will offer a solid capacity and market share in the coming years.
