JSW Cement IPO subscription status: Check day 2 bidding, latest GMP & more

The initial public offering (IPO) of JSW Cement continued to see a muted response during the second day of the bidding process from all the categories of the investors, nearing the halfway mark. The issue, which kicked off on Thursday, August 07, was overall booked nearly 30 per cent on day one.

Mumbai-based Brigade Hotel Ventures is selling its shares in the price band of Rs 139-147 apiece. Investors can apply for a minimum of 102 shares and its multiples thereafter. It is looking to raise Rs 3,600 crore via IPO, which includes a fresh share sale of 1,600 and an offer-for-sale (OFS) of up to Rs 13,60,54,421 equity shares worth Rs 2,000 crore.

According to the data, the investors made bids for 8,77,62,534 equity shares, or 0.48 per cent, compared to the 18,12,94,964 equity shares offered for the subscription by 2.35 pm on Friday, August 08, 2025. The three day bidding for the issue shall conclude on Monday, August 11.

The allocation for retail investors was subscribed 0.64 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 45 per cent. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for only 23 per cent as of the same time.

Incorporated in 2006, Mumbai-headquartered JSW Cement is a manufacturer of green cement in India. As part of the JSW Group, the company is committed to sustainability and innovation in the cement industry. The company operated seven plants across the country. It had an installed grinding capacity of 20.60 MMTPA as of March 31, 2025.

The grey market premium (GMP) of JSW Cement has seen a sharp correction amid the rising volatility and muted bidding for the issue. Last heard, the company was commanding a premium of Rs 13-14 per share in the unofficial market, suggesting 8-9 per cent listing gains for the investors. The GMP stood around Rs 19, when the price band was announced.

Analysts mostly have a positive view on this IPO. They suggest subscribing to this citing its strong parentage, growth prospects, group synergies, decent financial track record and plans for expansion. However, rich valuations and muted growth of the cement space limit act as key concerns for the issue.

JSW Cement’s revenue grew from Rs 4,865.8 crore in FY23 to Rs 5,813 crore in FY25, led by a 9.71 per cent CAGR in volumes. Over 77 per cent of FY25 sales came from green products like GGBS and PSC. With grinding capacity set to expand to 41.85 MTPA, the company is well-placed for growth and margin improvement post-FY26, said Nirmal Bang Securities.

“It is valued at 30.1 times FY25 EV/EBITDA which is above its peers but considering its scale, growth prospects, and group synergies, we recommend a Subscribe rating from a long-term perspective,” it added.

For the financial year ended on March 31, 2025, JSW Cement reported a net loss of Rs 163.77 crore with a revenue of Rs 5,914.67 crore. However, it clocked a net profit of Rs 62.01 crore with a revenue of Rs 6,114.60 crore for the year ended March 2023-24. The company shall command a market capitalization of Rs 20,041.46 crore.

With an EV/EBITDA valuation of 30.02 times, significantly higher than sector peers and a net loss reported in FY25, the issue appears fully priced, said Angel One. “While JSW Cement’s long-term growth prospects remain intact, the current financial profile and valuation warrants a cautious stance, justifying a ‘Neutral’ recommendation,” it added.

JSW Cement faces key risks including raw material dependency on group companies, high input cost volatility, execution delays in expansion projects, regional concentration and potential regulatory and legal challenges, said Angel One, flagging the risks for the company.

JSW Cement raised Rs 1,080 crore via anchor book as it finalised allocation of 7.34 crore equity shares at Rs 147 apiece. JSW Cement has reserved 50 per cent of the net offer for qualified institutional bidders, while non institutional investors will have 15 per cent of allocations. Retail investors will get 35 per cent of the allocation in the IPO.

JM Financial, Axis Capital, Citigroup Global Markets India, SBI Capital Markets DAM Capital Advisors, Goldman Sachs (India), Kotak Mahindra Capital are the book-running lead managers of the JSW Cement IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on August 14.