India’s JSW Cement has successfully closed its ₹3,600 crore initial public offering (IPO), achieving full subscription on the final day of bidding. Despite a slow start and subdued grey market signals, investor interest surged in the last hours of August 11, pushing the IPO across the finish line. The offering, which includes both fresh equity and an Offer for Sale (OFS), is now poised for allotment and listing on August 14.
Key Takeaways from Final Day Performance
The IPO was fully subscribed by the end of August 11, with total bids exceeding the 18.13 crore shares on offer
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Retail and Non-Institutional Investors (NIIs) led the charge with near-complete subscription levels
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Qualified Institutional Buyers (QIBs) showed limited interest, subscribing only 24% of their quota
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Grey market premium (GMP) settled at ₹5–6 per share, indicating a modest 3.4% listing gain
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Listing expected on BSE and NSE on August 14, with allotment finalization on August 12
IPO Structure and Financial Breakdown
JSW Cement’s IPO was structured to raise ₹3,600 crore through a combination of:
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₹1,600 crore via fresh equity issuance
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₹2,000 crore through Offer for Sale by existing shareholders
Major OFS contributors include:
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Apollo Management (₹931.8 crore)
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Synergy Metals Investments Holding Ltd (₹938.5 crore)
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State Bank of India (₹129.7 crore)
The IPO price band was set between ₹139 and ₹147 per share, with a minimum lot size of 102 shares. Retail investors required a capital of ₹14,994 to participate at the upper price band.
Subscription Trends and Investor Sentiment
The IPO saw lukewarm interest during the initial days, with only 67% subscription recorded by mid-morning on August 11. However, a late surge in bids helped the issue reach full subscription by the close of bidding.
Segment-wise subscription status:
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Retail Individual Investors: 99%
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Non-Institutional Investors: 109%
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Qualified Institutional Buyers: 24%
The subdued QIB participation raised concerns about institutional confidence, though retail enthusiasm helped balance the overall sentiment.
Grey Market Premium and Listing Outlook
The GMP for JSW Cement IPO hovered around ₹5–6 per share on the final day, translating to a 3.4% premium over the upper issue price. While this signals cautious optimism, it also reflects broader market volatility and investor wariness over valuation.
Unlisted shares were trading at ₹152 in the grey market, suggesting a potential listing price slightly above the IPO ceiling of ₹147.
Use of Proceeds and Strategic Plans
JSW Cement plans to deploy the IPO proceeds as follows:
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₹800 crore for a new integrated cement facility in Nagaur, Rajasthan
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₹520 crore for debt repayment
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Remaining funds for general corporate purposes
The company aims to expand its footprint in North and Central India, diversify its product mix, and enhance operational efficiency through cost optimization.
Analyst Views and Long-Term Prospects
Brokerages remain largely positive on JSW Cement’s fundamentals, citing:
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Strong brand equity under the JSW Group
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Leadership in Ground Granulated Blast Furnace Slag (GGBS) production
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Strategic expansion in high-growth regions
However, concerns persist around declining profit margins and exposure to related-party transactions. Analysts recommend the IPO for long-term investors with a high-risk appetite.
Source: News18 – August 11, 2025 Moneycontrol – August 11, 20252 Economic Times – August 11, 2025
