JSW Cement shares fall over 5% post market debut. What should investors do?
ADVERTISEMENT The stock listed at Rs 153 on the BSE, 4.1% above its IPO price of Rs 147, and at Rs 153.50 on the NSE, a 4.4% premium. But momentum quickly faded, with shares dropping to an intraday low of Rs 145.05 on both exchanges, down 5.2% and 5.5% respectively from their opening levels.
The performance nonetheless beat the grey market premium of Rs 151 seen ahead of listing, which had implied a gain of around 3%.
JSW Cement's book-built IPO, which ran from August 7 to 11, drew 7.77 times subscription overall, fuelled largely by institutional demand. Qualified institutional buyers bid 15.80 times their quota, non-institutional investors 10.97 times, and retail investors 1.81 times. The allotments were finalised on August 12.
The issue comprised a Rs 1,600-crore fresh sale of 10.88 crore shares and an Rs 2,000-crore offer for sale of 13.61 crore shares by promoters. Ahead of the launch, the company raised Rs 1,080 crore from anchor investors, including marquee domestic and global institutions. Shivani Nyati, Head of Wealth at Swastika Investmart, said JSW Cement's debut at Rs 153.50 amounted to a flat listing. Nyati noted the company is among India's top 10 cement makers and is expanding aggressively through new and existing projects to double grinding capacity. However, revenue and profit growth have been uneven in the past three years, and high valuations combined with current losses could trigger short-term volatility.
ADVERTISEMENT "Being in a growth phase, the company's high valuation and current losses could lead to short-term volatility in returns," said Nyati. Unlock 500+ Stock Recos on App Nyati advised IPO investors seeking listing gains to keep a stop loss at Rs 138, while medium-term to long-term investors could hold the stock for its growth potential.
ADVERTISEMENT
'JSW Cement's Rs 3,600-crore IPO wrapped up its third and final day of bidding with full subscription, reflecting strong investor interest despite a softening in grey market premiums to around 3–4% ahead of listing,' said Gaurav Garg of Lemonn Markets Desk.'We advise subscribing only with a long-term view, citing rich valuations and near-term earnings pressure, but highlighting the company's strong growth potential in India's infrastructure expansion.'
ADVERTISEMENT Brokerages had broadly advised long-term positions. Canara Bank Securities described JSW Cement as India's fastest-growing and the world's 'greenest' cement producer. While flagging its higher-than-peer valuations—32x EV/EBITDA versus the 23x industry average—it backed the IPO on long-term growth, sustainability credentials, and JSW Group synergies.AUM Capital Research cited leadership in Ground Granulated Blast Furnace Slag (GGBS) production, brand strength, and operational synergies.
ADVERTISEMENT SBI Securities had pointed to plans to more than double capacity to 60 million tonnes per annum by the mid-2030s, adding that profitability, hit by one-off losses, should improve through cost optimisation and new projects such as Shiva Cement's grinding unit in FY26.JSW Cement, part of the JSW Group, is a leading green cement maker with seven plants across India and an installed grinding capacity of 20.6 million tonnes a year. Its portfolio spans blended and ordinary Portland cement, GGBS, clinker, and allied products, supported by a network of over 4,600 dealers, 8,900 sub-dealers, and 158 warehouses.Proceeds from the fresh issue will help fund a new integrated cement unit at Nagaur, Rajasthan, repay borrowings, and meet general corporate needs. The offer for sale proceeds will go to existing shareholders.Despite profitability in FY23 and FY24, the company posted a loss in FY25, a factor analysts say could weigh on near-term sentiment as investors watch whether JSW Cement can deliver beyond its first trading day.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Festive season & monsoon spike vegetable prices
Panaji: Prices of vegetables in Goa have been witnessing a gradual rise over the last couple of weeks amid an increase in demand due to the Hindu holy month of Shravan and the upcoming Ganesh Chaturthi. Tired of too many ads? go ad free now Prices have also been affected due to quality deterioration of produce during storage and transportation in the monsoon. Tomatoes have seen a rise from Rs 40 to Rs 50 per kg, while onion prices have also spiked from Rs 30 to Rs 40 per kg. Potato rates have also increased from Rs 30 to Rs 40 per kg. As the festival approaches, the prices are expected to increase further. Burhanuddin Mulia, a vegetable vendor at the Panaji municipal market, said prices fluctuate frequently due to the rainy season and the demand for the vegetables. 'The price of tomatoes was Rs 80 last month. It was Rs 40 two weeks ago, and now, it has risen to Rs 50. It really depends on the quality we get and the demand,' said Mulia. A major part of Goa's vegetable demand is met by supply coming in from Belagavi. But due to various reasons such as the cost of cultivation, the prices of locally grown vegetables have also risen. Three small locally grown ridged gourds, or a similar quantity of bitter gourds, are now sold for Rs 100. Mohammad Haris, a vegetable vendor at Panaji, said customers are not happy with the quality of vegetables. 'And with the price hike, it doesn't justify the amount they are paying,' he said. Consumers said that for leafy vegetables like methi, raddish, coriander, etc, the prices may not seem to have been hiked, but the size of the bunches has significantly reduced. The state horticulture corporation, on its part, has said that it is supplying vegetables at subsidised rates, but the number of its stalls may fall short of the demand. Tired of too many ads? go ad free now Satyender Chaudhary, a customer from Mala, said that high prices often lead him to buy vegetables in decreased quantities. 'The prices are always high. Even if it reduces by Rs 10, we still end up paying more for the quantity of vegetables we used to pay for before. It is unfair,' said a customer from Taleigao.
Time of India
2 hours ago
- Time of India
New deadline for Curchorem Ravindra Bhavan
Margao: The much-anticipated phase II extension of Ravindra Bhavan in Curchorem is likely to be completed by Sep 31, the latest timeline set by the department of art and culture for completing all pending works. Official records reveal that while the amphitheatre and mini auditorium are structurally complete, interior works remain pending, preventing their immediate use. The project was plagued by multiple setbacks, including the Covid-19 pandemic's impact on manpower and material supply, design changes to the tensile fabric roof system for better structural stability, and contractor-related issues. Most significantly, the interior and allied works contractor was terminated in Dec 2023 due to poor performance, necessitating a fresh tendering process. Financial data reveals that the project's total cost escalated to Rs 27 crore, with Rs 24 crore already disbursed to contractors. The main civil, electrical, and firefighting works component, valued at Rs 20 crore, is 95% complete. However, interior works, originally worth over Rs 20 crore, remain only 50% finished under the new contractor arrangement. The audio-video systems installation is significantly behind schedule at just 30% completion, and doubts persist over its completion before the Sep 31 deadline. Notably, while major infrastructure components like CCTV systems and electrical metering are fully completed, the project's core entertainment facilities remain incomplete. The Rs 1.2 crore audio-video component has seen only Rs 75 lakh in payments, indicating substantial pending work that could further delay the project's operational readiness. The Goa State Infrastructure Development Corporation is overseeing the project through appointed project management consultants. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Economic Times
2 hours ago
- Economic Times
Samsung expanding manufacturing portfolio in India: Ashwini Vaishnaw
Synopsis Samsung is increasing its manufacturing efforts in India, according to Union Minister Ashwini Vaishnaw. The company already has its second-largest mobile phone manufacturing facility in India and is the second-largest exporter of handsets. Samsung is also preparing to manufacture laptops in India and makes all smartphones it sells in the country. ANI Samsung Electronics South Korean electronics major Samsung is expanding its manufacturing portfolio in India, union minister Ashwini Vaishnaw said on Saturday. Globally, Samsung has its second largest mobile phone manufacturing unit in India and it is the second largest exporter of the handsets from the country after Apple. "Samsung continues to expand manufacturing of its advanced technology devices in Bharat, driven by talent and innovation. Its research unit in Bharat has more than 7,000 engineers," Vaishnaw said in a social media post. The minister on X posted a photo of his meeting with Samsung Southwest Asia, President and CEO, JB Park and Samsung Southwest Asia, Corporate Vice President, SP Chun. Earlier this year, Samsung Electronics President and Head of Mobile eXperience (MX) Business TM Roh had said the company is preparing for manufacturing laptops in India. The company continues to make all smartphones that it sells in India including latest flagship smartphones Galaxy Z Fold7, priced in the range of Rs 1.74 lakh to Rs 2.11 lakh apiece and Galaxy Z Flip7 which is priced in the range of Rs 1.09 lakh to Rs 1.22 lakh apiece.
