JSW Cement's ₹3,600cr IPO opens today: Should you bid?
What's the story
JSW Cement, a leading player in the construction materials industry, has launched its ₹3,600 crore initial public offering today. The shares are being offered at a price band of ₹139-147 apiece with a minimum investment of one lot consisting of 102 shares. The tentative listing date is set for August 14. The public issue comprises a fresh issue worth ₹1,600 crore and an offer for sale worth ₹2,000 crore. Canara Bank Securities has issued a "Subscribe" rating for the IPO.
Fund allocation
How the company plans to use IPO funds
The IPO has been divided into 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and at least 35% for retail investors. The company plans to use ₹800 crore from the fresh issue to set up a new integrated cement plant in Nagaur, Rajasthan. Another ₹520 crore will go toward paying off existing loans, while the rest will be used for general corporate purposes.
Financials
JSW Cement's revenue from operations rose in FY24
In FY24, JSW Cement reported ₹6,028 crore in revenue from operations, up from ₹5,837 crore a year earlier. However, its net profit fell to ₹62 crore from ₹104 crore in FY23. JSW Cement's distinct green strategy, built on a circular economy model, gives it the lowest CO₂ emission intensity in the industry. The company reduces environmental impact by repurposing industrial by-products and using alternative fuels such as biomass, pharmaceutical waste, and plastic.
Market strategy
What does JSW Cement do?
JSW Cement, part of the diversified JSW Group, has a strong presence in the southern region of India and operates multiple plants across the country. The company's product portfolio includes blended cement, ordinary Portland cement, clinker and allied cementitious products such as ready-mix concrete, screened slag construction chemicals and waterproofing solutions. As of March 31, 2025, JSW Cement had seven plants in India with a total grinding capacity of 20.6 million metric tons per annum.