Retail investors can bid for a minimum of 75 shares. The IPO has attracted modest grey market activity, with a current grey market premium (GMP) of 3%, indicating muted listing expectations amid broader market volatility and concerns around recent financial performance.
Incorporated in 2009, JSW Cement is one of the fastest-growing cement manufacturers in India by capacity and sales volume over the past decade.
The company is India’s largest manufacturer of Ground Granulated Blast Furnace Slag (GGBS), a by-product of steel production that has emerged as a sustainable alternative to traditional cement in infrastructure projects. It holds an 84 percent market share in this segment, supplying marquee projects like the Mumbai Coastal Road, Bengaluru Airport, and Mumbai Metro.
JSW Cement’s unique green focus — lowest CO2 emission intensity among peers — is tied to its circular economy model, which repurposes industrial by-products and uses alternate fuels like biomass, pharma waste, and plastic.
Despite these strengths, the company’s financials have been uneven. Revenue in FY25 stood at Rs 5,813 crore, down slightly from FY24, while EBITDA contracted to Rs 815 crore from Rs 1,035 crore. Most notably, the company slipped into a net loss of Rs 164 crore in FY25, following a profit of Rs 62 crore in FY24. Margins also fell, with EBITDA margin down to 13.78% from 16.94% a year ago.The company attributes the FY25 loss to one-off items and subsidiary underperformance. Yet, analysts note that the issue is valued at 32x EV/EBITDA and 6x P/B — a premium to sector leaders like UltraTech and Shree Cement, which trade at lower EV/EBITDA multiples.Proceeds from the IPO will be used to fund a new integrated cement unit in Nagaur, Rajasthan (Rs 800 crore), repay debt (Rs 520 crore), and for general corporate purposes.
Should You Subscribe?
Canara Bank Securities has issued a “Subscribe” rating for the IPO. While the issue is attractively positioned around the green cement and infrastructure themes, short-term investors may find limited upside given the high valuation, recent loss, and regulatory overhang involving promoter entities.
However, JSW Cement’s strong brand association, aggressive capacity expansion, and alignment with government-led infrastructure growth make it a compelling long-term play. Investors with moderate risk appetite and a long-term horizon can consider subscribing.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
