JSW Cement shares are expected to make a moderate debut on the stock exchanges on August 14 after the company’s initial public offering (IPO) was subscribed 7.77 times during August 7–11.
The company had earlier raised Rs 1,080 crore from anchor investors. The IPO was priced in the range of Rs 139–147 per share, valuing the 17-year-old firm at about Rs 20,000 crore at the upper end of the band.
Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said JSW Cement, backed by the JSW Group, has a competitive edge through its focus on environmentally friendly “green” cement. The company is the country’s largest manufacturer of ground granulated blast-furnace slag (GGBS) with an 84 percent market share.
"Based on annualised FY25 earnings, a post-issue market capitalisation of about Rs 20,041.5 crore, and at the upper price band of Rs 147, the offer is valued at around 36.7 times post-IPO EV/EBITDA (FY25), making it appear aggressively priced. We believe JSW Cement’s synergies with the JSW Group, strategic plant locations, GGBS focus, capacity expansion, efficient distribution network, and alignment with India’s sustainable infrastructure push position it for long-term profitability. Therefore, investors may consider holding the stock for the long term post listing," Solanki said.
According to websites tracking the grey market activities, the shares of JSW Cement are commanding a GMP of over 3 percent in the unregulated market. Investorgain quoted a GMP of Rs 4.75 for the shares of the company, indicating a listing gain of 3.23 percent.
The company plans to use Rs 800 crore from the proceeds to part-finance a new integrated cement unit at Nagaur, Rajasthan, Rs 520 crore for repayment of debt, and the rest for general corporate purposes.
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