JSW Cement IPO Receives Strong Response, NSDL Delivers Stellar Returns
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Shares of JSW Cement will list on the BSE and NSE on August 14, following a strong investor response to its INR 3,600 crore initial public offering (IPO), which was subscribed nearly eight times. The allotment of shares is expected to be finalised tonight, August 12.
The IPO was open for subscription in the primary market from August 7 to 11, with a price band of INR 139-147 per share. At the upper end of this range, the 17-year-old company is valued at INR 20,000 crore. Before the opening, JSW Cement raised INR 1,080 crore from anchor investors.
According to NSE data, the issue received bids for 1.4 billion shares against 181.29 million shares on offer, translating into a subscription rate of 7.77 times. Demand was led by Qualified Institutional Buyers (QIBs), whose reserved portion was subscribed 15.8 times, followed by Non-Institutional Investors (NIIs) at 10.97 times. The retail investor portion saw a subscription of 1.81 times.
The book-running lead managers (BRLMs) for the issue are Axis Capital, JM Financial, Citigroup Global, DAM Capital, Goldman Sachs (India), Jefferies India, Kotak Mahindra Capital, and SBI Capital Markets.
As per the Red Herring Prospectus (RHP), the net proceeds from the fresh issue will be utilised for setting up a new integrated cement plant in Nagaur, Rajasthan, repayment of debt, and general corporate purposes.
NSDL Shares Deliver 78% IPO Returns; Stock Extends Winning Streak
Shares of National Securities Depository Limited (NSDL) have continued their upward momentum since debuting on August 6, delivering a 78 per cent return to IPO investors in just four sessions. On August 11, NSDL shares surged another 9.6 per cent in intraday trade to a fresh high, marking the fourth consecutive day of gains.
On its listing day, NSDL made a positive debut, opening at INR 880 per share on the BSE, a 10 per cent premium to its IPO price of INR 800, and closing at INR 936, up 17 per cent from the issue price.
The NSDL IPO, which had a price of INR 800 per share, saw a robust subscription of 41 times. The Qualified Institutional Buyers (QIBs) segment was subscribed an impressive 103.97 times, while the Non-Institutional Investors (NIIs) quota saw 34.98 times subscription. The retail investor segment was booked 7.73 times, and the employee portion received 15.42 times the subscription.
According to the company, the government's ongoing push for digital financial services offers a strong tailwind for NSDL's growth, positioning it for long-term expansion.
NSDL is India's largest depository, managing over INR 200 lakh crore worth of securities in dematerialised (demat) form and holding a dominant 85 per cent market share. With over 3 crore demat accounts, it plays a pivotal role in India's rapidly expanding capital markets.
Market Outlook
Siddhartha Khemka - Head Of Research, Wealth Management, Motilal Oswal Financial Services said that domestic institutions (DIIs) remained net buyers in August INR 42,750cr, offsetting foreign institutional investor (FII) outflows of ~INR 15,000cr, continuing to provide support during market volatility. Investors awaited key macro data, India's CPI and US Core CPI, due later today, that could influence near-term interest rate expectations.
Bajaj Broking maintained that the day witnessed profit-taking as investors turned risk-averse ahead of critical domestic and US inflation readings. Market focus stayed firmly on upcoming macroeconomic releases, particularly India's July CPI inflation figures and the US CPI print.
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