New Delhi, August 14 (HS): JSW Cement, the grey cement arm of the JSW Group, made a cautious debut on the Indian stock exchanges today, delivering only a small boost to IPO investors despite strong pre-listing demand.
The company’s shares, issued at ₹147 apiece in its ₹3,600 crore initial public offering (IPO), debuted at ₹153 on the BSE and ₹153.50 on the NSE — translating into a listing gain of just about 4%. However, early optimism faded quickly as selling pressure set in, pushing the stock down to ₹151.50 by 10:15 AM, still leaving investors with a modest 3.06% profit.
The IPO, open from August 7 to 11, received a robust response, being oversubscribed 8.22 times. The Qualified Institutional Buyers’ segment led the demand with subscriptions at 16.71 times, followed by Non-Institutional Investors at 11.60 times, and Retail Investors at 1.91 times. The offering comprised 10.88 crore fresh shares worth ₹1,600 crore and 13.60 crore shares via the offer-for-sale route, each with a face value of ₹10.
Proceeds from the issue will fund the setting up of an integrated cement plant in Nagaur, Rajasthan, repayment of existing debt, and general corporate purposes.
However, the company's recent financial performance paints a challenging picture. Net profit plunged from ₹104.04 crore in FY 2022–23 to ₹62.01 crore in FY 2023–24, before swinging to a net loss of ₹163.77 crore in FY 2024–25. Total income fluctuated between ₹5,900 crore and ₹6,100 crore in the same period, while debt swelled from ₹5,421.54 crore to ₹6,166.55 crore over two years.
Market analysts say the modest listing reflects a mix of strong investor interest in the brand and caution over financial headwinds. The company’s ability to swiftly execute its expansion plans and reduce mounting debt will be critical for sustaining market confidence.
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Hindusthan Samachar / Jun Sarkar
