The grey market premium (GMP) of JSW Cement has declined ahead of its initial public offering (IPO) that opens for subscription on August 7.
JSW Cement, part of the Sajjan Jindal-led JSW Group has fixed a price band of Rs 139-147 per share for the IPO.
According to websites tracking grey market trends, JSW Cement shares are quoting a premium of around Rs 8 in the unregulated market, implying a listing gain of about 5.44 percent over the upper price band. This is a sharp fall from the earlier premium of over 12 percent observed earlier this week.
The issue size is lower than the previously planned Rs 4,000 crore, as per the latest Red Herring Prospectus (RHP).
The IPO comprises a fresh issue of equity shares aggregating up to Rs 1,600 crore and an Offer for Sale (OFS) of up to Rs 2,000 crore by existing shareholders.
The public issue will close on August 11, while anchor investors can bid on August 6.
JSW Cement has manufacturing facilities at Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Through its subsidiary Shiva Cement, the company also operates a clinker unit in Odisha.
Post the IPO, the company’s shares will be listed on BSE and NSE on August 14, while the allotment is expected on August 12.
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