JSW Cement IPO Opens Today; ₹10,800 Cr Raised from Anchor Investors Ahead of Launch

Mumbai, August 7, 2025: JSW Cement’s highly anticipated initial public offering (IPO) has opened for subscription today, with the company aiming to raise ₹36,000 crore. The offer has already seen strong interest from institutional investors, with ₹10,800 crore raised from anchor investors ahead of the launch. From today onwards, retail investors will be able to apply to the IPO issue.

The IPO will open for subscription today, August 7, 2025, and will close on August 11, 2025. The price for the shares has been set in the range of ₹139 to ₹147 per share. Investors can bid for a minimum of 102 shares, which means the minimum investment required is ₹14,994. The shares will be listed on both the NSE and the BSE.

The IPO is a combination of both fresh issue and offer for sale (OFS) amounting to ₹16,000 crore and ₹20,000 crore. Also anchor allocation is reserved at ₹10,799.99 crore, worth 7,34,69,386 equity shares

JSW Cement Limited is a major name in the cement manufacturing industry and is part of the larger JSW Group. The company is headquartered in Mumbai, India, and focuses on producing eco-friendly cement and other building materials.

₹10,800 Cr Mobilised from 52 Anchor Investors

JSW Cement allotted 7,34,69,386 equity shares at ₹147 per share to 52 anchor investors, aggregating to ₹10,799.99 crore.

Prominent participants in the anchor round included:

• SBI Mutual Fund (via multiple schemes such as SBI Multicap, Flexicap, Infrastructure Fund, etc.)
• BlackRock Emerging Frontiers Master Fund
• Nomura Funds Ireland
• Nippon India Mutual Fund
• Aditya Birla Sun Life Midcap Fund
• Tata Mutual Fund
• Abu Dhabi Investment Authority
• Morgan Stanley Investment Fund
• Kuwait Investment Authority
• Amundi Funds
• Goldman Sachs Singapore

Out of the total shares allocated, 44.45% (3.26 crore shares) were allotted to 20 domestic mutual fund schemes across 9 fund houses, amounting to ₹4,800.07 crore.

Use of Proceeds

The money raised from the fresh issue will be used for key business initiatives. A significant portion of the funds will go towards capacity expansion projects, including building a new facility in Nagaur. The company also plans to use the money for repaying or prepaying some of its borrowings, and the rest will be used for general corporate purposes.

Lead Managers

The IPO is being managed by a consortium of book-running lead managers, including:

• JM Financial
• Axis Capital
• Citigroup
• DAM Capital
• Goldman Sachs
• Jefferies India
• Kotak Mahindra Capital
• SBI Capital Markets

Financial Highlights (Restated Consolidated)

The company’s financial performance over the last three years shows a mix of growth and challenges. The company’s total assets have steadily increased, reaching ₹12,003.94 crore by March 31, 2025. Total income has remained stable, hovering around ₹6,000 crore. However, profit after tax has fluctuated, with a loss of ₹163.77 crore reported for the period ending March 31, 2025, compared to a profit of ₹62.01 crore in the previous year. The company’s total borrowings have also been on the rise, reaching ₹6,166.55 crore as of March 31, 2025.

Key Performance Indicators (KPIs)

As of March 31, 2025, the company’s key performance indicators reflect the recent challenges. The Return on Equity (ROE) and Return on Net Worth (RoNW) were negative, at -6.90 and -4.85% respectively, due to the reported loss. The Debt-to-Equity ratio was 0.98, indicating that the company’s debt is almost equal to its equity. The EBITDA Margin was 13.78%, while the PAT Margin was negative at -2.77%. The Pre-IPO Earnings Per Share (EPS) was -₹1.31.

Insights for Retail Investors

• Strong Institutional Backing is a Good Sign
  The IPO has already raised nearly ₹10,800 crore from 52 big institutional investors. This early support shows strong confidence from serious players.
• Minimum Investment is ₹14,994
  The price band is ₹139–₹147 per share, and the minimum lot size is 102 shares. So, you need at least ₹14,994 to apply.
• High Total IPO Size
  The company is looking to raise ₹36,000 crore, which is quite large. This makes it one of the biggest IPOs in the cement sector.
• Use of Funds Looks Positive
  The money raised will go into expanding capacity, repaying loans, and other business improvements. This can help the company grow faster and reduce debt.
• Company Has Growth Potential
  JSW Cement is part of the trusted JSW Group and focuses on eco-friendly building materials—an area with long-term demand.
• But Profitability Is a Concern
  The company reported a loss of ₹163.77 crore for the year ending March 2025. This could worry some investors looking for near-term profits.
• Debt Levels Are High
  Total borrowings stood at ₹6,166.55 crore, and key return ratios like ROE and RoNW were negative. This means the company is still working on turning things around financially.

What’s Ahead?

JSW Cement’s IPO has seen strong interest from big institutional investors, which shows confidence in the company’s long-term potential. The funds raised will help expand operations and reduce debt, which is a positive step. However, the company is currently not profitable and has high borrowings, which could worry short-term investors. The cement sector has long-term demand, especially for eco-friendly products. Retail investors should weigh the company’s future potential against its current financial challenges. Watching upcoming financial results may help in deciding whether to stay invested.

REF: https://nsearchives.nseindia.com/content/ipo/ANCHOR_JSWCEMENT.zip

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