Introduction
JSW Cement Limited is tapping the primary markets with its Initial Public Offering (IPO), opening for subscription on August 7, 2025. As part of the reputed JSW Group, this IPO has garnered attention from investors looking for opportunities in India’s growing infrastructure and construction space. But should you invest in JSW Cement IPO or give it a pass? Let’s do a detailed JSW Cement IPO Review and Analysis.
About JSW Cement Ltd
Incorporated in 2006, JSW Cement is one of India’s leading green cement manufacturers and part of the diversified JSW Group. The company focuses on sustainable and environment-friendly cement production and operates 7 plants across India with an installed grinding capacity of 20.6 MMTPA.
Its product portfolio includes Blended Cement, Ordinary Portland Cement, GGBS, Clinker, and allied construction chemicals. JSW Cement is India’s largest manufacturer of GGBS and enjoys a strong distribution network with over 13,000 dealers and sub-dealers.
Competitive Strengths
- Fastest growing cement company in India by capacity and volume
- India’s largest producer of GGBS
- Well-located plants near key markets and raw materials
- Among the lowest CO2 emitters in the cement sector
- Strong sales and distribution backed by JSW Group brand
- Experienced management team
JSW Cement IPO Issue Details
- IPO Opening Date: August 7, 2025
- IPO Closing Date: August 11, 2025
- Listing Date (Tentative): August 14, 2025
- Face Value: ₹10 per share
- Price Band: ₹139 to ₹147 per share
- Lot Size: 102 shares
- Minimum Investment (Retail): ₹14,994
- Total Issue Size: ₹3600 Crores
- Fresh Issue: ₹1600 Crores
- OFS: ₹2000 Crores
- Listing at: BSE, NSE
- Lead Managers: JM Financial, Axis Capital, Citigroup, Kotak, SBI Capital, etc.
Financials of the Company
| Financial Year | Total Income (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| FY 2023 | 5,982 | 104 | 827 | 2,292 |
| FY 2024 | 6,115 | 62 | 1,036 | 2,465 |
| FY 2025 | 5,915 | -164 | 815 | 2,353 |
- Sharp drop in profitability in FY25 raises concern
- Debt stands at ₹6,167 Cr; Debt/Equity at 0.98
- Return ratios (ROE -6.9%, ROCE 7.05%) not attractive
Objects of the IPO
- Setting up a new integrated cement unit in Nagaur, Rajasthan (₹800 Cr)
- Repayment/prepayment of some borrowings (₹520 Cr)
- General corporate purposes
Valuation and P/E Comparison
| Particulars | EPS (₹) | P/E (x) | Price/Book (x) |
|---|---|---|---|
| Pre-Issue | -1.31 | -112.61 | 6.16 |
| Post-Issue | -1.20 | -122.38 | – |
Compared to listed peers, JSW Cement’s financials and valuation appear expensive. Losses in FY25 make traditional P/E comparison less meaningful.
Grey Market Premium (GMP)
As of August 5, 2025, JSW Cement IPO GMP is reported at ₹5-8 per share, indicating a mild listing gain. However, GMP is volatile and should not be the sole criteria for investment.
Reasons to Invest in JSW Cement IPO
- Part of JSW Group, which brings brand trust and corporate strength
- Strong market presence with largest GGBS production
- Long-term infrastructure and housing growth to boost cement demand
- Proceeds to expand capacity and reduce debt
Risk Factors
- Reported loss in FY25 raises red flags
- Highly competitive industry with price wars
- Cyclical nature of cement demand
- High debt burden affecting profitability
How to Apply for JSW Cement IPO?
You can apply for JSW Cement IPO via:
- UPI-based ASBA through your trading account
- Net banking (ASBA) through banks like ICICI, HDFC, SBI, etc.
- Through mobile trading apps (Zerodha, Groww, Upstox)
JSW Cement IPO Review – Should You Subscribe or Avoid?
JSW Cement is backed by a reputed group and has an impressive distribution network and green cement footprint. However, the sharp fall in profitability in FY25 and negative EPS raise valuation concerns.
High-risk investors with long-term horizon may consider applying. Conservative investors may wait for post-listing performance.
FAQs about JSW Cement IPO
1. What is JSW Cement IPO Date?
IPO opens on August 7 and closes on August 11, 2025.
2. What is JSW Cement IPO Price Band?
Price band is ₹139 to ₹147 per equity share.
3. What is JSW Cement IPO GMP today?
GMP is in the range of ₹5 to ₹8 per share as of August 5, 2025.
4. What is JSW Cement IPO lot size and minimum investment?
Lot size is 102 shares. Minimum investment is ₹14,994.
5. What are JSW Cement IPO Objects of the Issue?
To set up new plant in Rajasthan, repay borrowings, and for general corporate purposes.
6. Who are the promoters of JSW Cement?
Sajjan Jindal, Parth Jindal, Sangita Jindal, Adarsh Advisory, and Sajjan Jindal Family Trust.
7. How is the financial performance of JSW Cement?
Company posted profits in FY23 and FY24 but a loss in FY25 due to industry headwinds.
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