IPO Details:
- IPO opens: August 7, 2025.
- IPO closes: August 11, 2025.
- IPO Size: ₹3,600.00 crores.
- Fresh Issue: ₹1,600.00 crores. Offer for Sale (OFS): ₹2,000.00 crores.
- IPO Price Band: ₹139 to ₹147 per share.
- Lot size: 102 shares.
- Minimum retail investment: ₹14,994. Allocation to Investors:
- Qualified Institutional Buyers (QIBs): 50.00%.
- Anchor Investors: 30.00%.
- Non-Institutional Investors (NII/HNI): 15.00%.
- Retail Individual Investors (RII): 35.00%.
- Lead Managers: Jm Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, Dam Capital Advisors Ltd, Goldman Sachs (India) Securities d, Jefferies India Private Limited, Kotak Mahindra Capital , SBI Capital Markets
- Registrar: Kfin Technologies Limited.
About the Company:
- History: Jindal took over JSW Cement in 2016 when it was a loss-making company.
- Main Products: Manufacturer of green cement (blended cement like Portland Slag Cement (PSC), Portland Composite Cement (PCC)), Ground Granulated Blast Furnace Slag (GGBS), Ordinary Portland Cement (OPC), clinker, and allied cementitious products (ready-mix concrete, construction chemicals).
- Sales & Manufacturing Units: Operated seven plants across India (one integrated unit, one clinker unit, and five grinding units) in Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, West Bengal, and Odisha. JSW Cement FZC operates a clinker unit in UAE. As of March 31, 2025, the company had a distribution network of 4,653 dealers, 8,844 sub-dealers, and 158 warehouses. Current installed grinding capacity is 20.6 million tons per annum (MMTPA).
- Promoters: Sajjan Jindal, Parth Jindal, Sangita Jindal, Adarsh Advisory Services Private Limited, and Sajjan Jindal Family Trust.
- Branches/Network: Currently present in the South, East, and West regions of India. Planning to expand into North and Central India.
Financials:
| Particulars (Rs. Cr) | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Revenues | 5,813.07 | 6,028.10 | 5,836.72 |
| EBITDA | 815.32 | 1,019.37 | 826.97 |
| EBITDA Margin (%) | 13.78% | 16.94% | 13.82% |
| Net Profit | -163.77 | 62.01 | 104.04 |
| Net Profit Margin (%) | -2.77% | 1.01% | 1.74% |
Post IPO Market cap: ₹20,041.46 crore. P/E FY24: 319.57 times. P/E FY25 : Negative P/E.
The company reported declining profitability and a heavy loss for FY25. Revenue decreased by 3% in FY25, and profit after tax (PAT) dropped by 364% compared to FY24.
Anchor Investors
JSW Cement raised ₹1,080 crore from 51 anchor investors, including top names like Nomura, Government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Investment Fund, Goldman Sachs (Singapore) Pte, Kuwait Investment Authority, SBI Mutual Fund, HDFC Mutual Fund, Nippon India MF, Axis Mutual Fund, ICICI Prudential MF, Kotak Mahindra MF, Mirae Asset MF, Aditya Birla MF, and Franklin Templeton MF, with allocations ranging from 3.5% to 6.8% each.
The remaining anchor investors include a mix of insurance companies, pension funds, and foreign portfolio investors, each holding minor allocations under 2.5%. Mutual funds together received about 42% of anchor allocation.
Salient Points:
- Use of Funds: Approximately ₹800 crores will be used to partly finance a new integrated cement unit in Nagaur, Rajasthan. ₹520 crores are allocated for prepayment or repayment of certain outstanding borrowings. The remaining balance will be used for general corporate purposes.
- Business Scenario: The cement industry faces a challenging and hyper-competitive environment with major players and ongoing consolidation. Industry growth was only about 1% in the last year (FY25) due to general and state elections. However, the company expects overall year growth to be around 6% to 7%, with 8% to 9% in the second half of the year.
- Business Operations: The company is fully backward integrated, using waste products like blast furnace slag from steel making and fly ash from thermal power plants as raw materials, which significantly lowers raw material costs. It leverages JSW Group’s infrastructure (ports, rail) and sales/marketing network (TMT rods and cement are sold together) to reduce logistics costs and gain market access. JSW Cement claims to have the lowest carbon dioxide emission intensity among its peers.
- Revenue Model: Focus on cement sales and increasing penetration and volume growth of GGBS, where it is the clear market share leader (84% in FY25).
- Business Strategy: The core strategy is to become a pan-India cement player by expanding into North and Central India, which will also naturally hedge against regional price volatility. The company aims to increase its capacity from 20.6 MMTPA to 42 MMTPA over the next 3 to 5 years, with a long-term organic roadmap to reach 60 MMTPA. The company expects to maintain its track record of being the fastest-growing cement company over the next 10 years, with over 20% CAGR growth. The company projects to become a ₹10,000 crore company within the next two years. Its medium-term focus is on organic growth, as competing for acquisitions with larger, cash-rich players would be very expensive.
- Risks: High sensitivity to the external environment and price volatility. Significant net loss in FY25 raising concerns about profitability. High leverage, with a net debt-to-EBITDA ratio of 4x post-IPO. The company faces challenges in taking market share in a highly competitive market.
- Revenue Split by Region: In FY25, 56%-58% from South India, 20%-23% from Eastern region, and 20%-22% from Western region. Revenue Split by Product: Green cementitious products (GGBS, PSC, PCC, and others) constituted 77.41% of its sales volume in FY25.
- Capacity Utilization: Installed grinding capacity grew at a CAGR of 12.42% and sales volume (excluding JSW Cement FZC) grew at a CAGR of 15.05%. EV/EBITDA: Historic EV/EBITDA multiple of 27x, and 36.79 times post-IPO EV/FY2025 EBITDA.
Peers:
| Companies | Revenue (Cr.) | EBITDA% | PAT% | D/E Ratio | ROCE | P/E | MCap. / Sales | EV/EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| JSW Cement Limited | 5,813 | 14.87 | -2.77 | 2.59 | 7.05 | in loss | 3.45 | 36.79 |
| UltraTech Cement Limited | 75,955 | 17 | 7.95 | 0.34 | 10.9 | 52.4 | 4.76 | 26.96 |
| Ambuja Cements Limited | 35,045 | 17 | 14.7 | 0.01 | 10.5 | 34.6 | 4.27 | 23.5x |
| Shree Cement | 19,283 | 20 | 5.8 | 0.05 | 6.71 | 98.8 | 5.73 | 26.32 |
| Dalmia Bharat Limited | 13,980 | 17 | 5 | 0.33 | 5.58 | 45.2 | 2.98 | 16 |
Management Commentary:
Parth Jindal stated that taking JSW Cement public was a dream since 2016 and a “gratifying moment” after 9 years, as he aimed to turn around a loss-making company and build his own credibility. He emphasized that JSW Cement’s “right to win” in the competitive market comes from its synergy with the JSW Group, particularly using waste products like blast furnace slag and fly ash as raw materials from steel and thermal power processes. This co-location of cement plants with steel/power plants significantly lowers raw material and transportation costs. The company also leverages the JSW Group brand and the sales/marketing network of JSW Steel for TMT rods and cement, which are often sold together. The strategy is to become a pan-India cement player by expanding into North and Central India, aiming to reach 42 million tons capacity from the current 20.6 million tons over the next 3 to 5 years. Despite industry competition, the company focuses on organic growth for the medium term, as acquisitions would be too expensive given the “cash-rich” larger players. Jindal expressed confidence that the company will continue to be the fastest-growing cement company and become a “very big success,” with the family retaining their shares in the IPO as a sign of this belief. He expects fair value impact and ESOP charges to cease from FY26, improving profitability.
Opinion:
I have a neutral view on IPO. JSW Cement is one of the fastest-growing cement manufacturers in India, supported by strong synergies and backward integration within the JSW Group, Risk involve its ability to withstand hyper-competition from larger, cash-rich players. The IPO’s valuation appears aggressive, and the company has high leverage. JSW Cement stands below larger listed peers on margin and profitability but shows promise for growth in long term. The company currently has a capacity of about 20.6 MTPA and plans to grow organically to 40-42 MTPA primarily through internal accruals, with the aim to reach 60 MTPA in the coming years. Keeping in view significant expansion and recovery in cement prices in Q1FY26, I intend to apply in the IPO to the extent of the response in gets on Day3.
Post IPO equity capital: ₹1363.37 crore. P/E for FY24: 319.57 times. P/E FY25: Negative
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.