IPO Report : JSW Cement Ltd By Choice Broking
Salient features of the IPO:
* JSW Cement Ltd. (JSW), is a part of the JSW Group, a multinational conglomerate with a portfolio of diversified businesses across various sectors, is coming up with an IPO to raise Rs. 3,600cr which opens on 7 th Aug. and closes on 11th Aug. 2025. The price band is Rs. 139 - 147 per share.
* This public issue is a combination of fresh issue (Rs. 1,600cr) and OFS (Rs. 2.000cr). The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will be utilizing Rs. 800cr for part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan and Rs. 520cr for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company residual proceeds will be utilized for general corporate purpose.
* Some of the investor selling shareholders are participating in the OFS and are offloading 13.61 – 14.39cr equity shares. Post-IPO, the public shareholders will have 25.28% stake in the company.
Key competitive strengths:
* Among the top three fastest growing cement manufacturing companies in India in terms of increase in installed grinding capacity and sales volume
* India’s largest manufacturer of GGBS and have a proven track record of scaling up this business
* Strategically located plants that are well-connected to raw material sources and key consumption markets.
* Lowest carbon dioxide emission intensity among peer cement manufacturing companies in India and the top global cement manufacturing companies.
* Extensive sales and distribution network in India and focus on strong brand.
Risk and concerns:
* General slowdown in the global economic activities
* Reliance on JSW Steel Group for key raw materials.
* Risk of failure to maintain or increase the utilisation levels of plants
* Business is exposed to seasonal and cyclical demand fluctuations
* Risk of exchange rate fluctuation • Competition
Below are the key highlights of the company:
* Cement demand in India is expected to grow steadily, driven by housing, infrastructure, and urban development. Key high-growth states like Odisha and West Bengal are projected to clock 7–9% CAGR in cement demand from FY25 to FY30, supported by infrastructure investments and industrial growth.
* The eastern and southern regions have accounted for ~51% of total capacity additions from FY21 to FY25, with the trend expected to continue through FY30. This shift is led by players like JSW Cement and Dalmia, aiming to expand market share in fast-growing regions.
* JSW started it’s operations in 2009 in the southern region of India through a single grinding unit in Vijayanagar, Karnataka. Since then, it has expanded it’s presence across the southern, western and eastern regions of India and UAE. It’s product portfolio consists of blended cement (including PSC, PCC and PPC), GGBS, ordinary portland cement (“OPC”), clinker and a range of allied cementitious products such as ready mix concrete (“RMC”), screened slag, construction chemicals and waterproofing compounds.
* It is among the top three fastest growing cement manufacturing companies in India in terms of increase in installed grinding capacity and sales volume from FY15 to FY25 (among the peers in terms of installed capacity and sales volume). It is among the top 10 cement companies in India in terms of installed capacity and sales volume as of March 31 2025.
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SEBI Registration no.: INZ 000160131
