JSW Cement IPO: Price, Analysis, And GMP

JSW Cement IPO - Company Analysis

JSW Cement IPO, a Mainboard IPO, is a bookbuilding issue of Rs. 3600 Cr (24.48 Cr Shares) by JSW Cement Ltd., which was incorporated in 2006 and produces green cement. The company, which is a member of the JSW Group, is dedicated to innovation and sustainability in the cement sector.

According to the CRISIL Report, its installed grinding capacity increased at a CAGR of 12.42% for the fiscal years 2023 to 2025, and sales volume (excluding JSW Cement FZC) increased at a CAGR of 15.05%. These growth rates were faster than the industry average CAGRs of 6.23% for installed capacity and 8.12% for sales volume during that time.

The company ran 7 plants nationwide in different states of India.

 

Portfolio of Products:

Cement: Regular Portland cement and blended cement

Ground Granulated Blast Furnace Slag: GGBS is frequently used to make blended cement products like PCC and PSC, as well as to replace OPC in the manufacturing of concrete.

Clinker: Clinker is made by heating clay and limestone to a high temperature.

Related Cementitious Products: Construction Chemicals, RMC, and Screened Slag.

 

JSW Cement IPO Details

The JSW IPO open date is from Aug 07 to Aug 11, with IPO allotment on Aug 12, refund initiation on Aug 13, 2025.

The Rs. 3600 crore mainline IPO comprises a combination of a fresh issue of 10.88 crore shares (Rs. 1600 Cr) and an offer for sale (OFS) of 13.61 crore shares (Rs. 2000  Cr).              

The JSW Cement IPO listing date might be on Thursday, 14 August 2025, and it will be listed at the BSE and NSE. The JSW Cement IPO price band is Rs. 139 to Rs. 147 for each Share.                                                                                                                                                                                                                                                                          

Events	Date
IPO Opening Date	Aug 07, 2025
IPO Closing Date	Aug 11, 2025
IPO Allotment Date	Aug 12, 2025
Refund Initiation	Aug 13, 2025
IPO Listing Date	Aug 14, 2025

 

 

JSW Cement IPO - Business Analysis

JSW Cement claims to be a “green cement” company with several plans for the future. However, reading through the RHP reveals some hidden things that every investor must be aware of. 

1. JSW’s Cement CO₂ Reduction is a Future Income Possibility  

The company’s future income from cement can be enhanced through CO₂ reduction.  

Slag-based cement = Lower CO₂ = Potential carbon credit windfall

Though India hasn’t enforced any carbon rules, if it tightens the ESG regulations, it can facilitate carbon credit rewards. 

2. Well-Planned Locations of the Plants  

The plants help the company to easily cover the South, West, and East India regions. This cuts down transport costs and delivery time.  

The plants are in:  

1. Karnataka  

2. Maharashtra  

3. Odisha  

4. West Bengal

3. Significant Advantages of JSW Group Companies

JSW Cement Acquires:

• Slag from JSW Steel

• Power from JSW Energy

• Transport from JSW Infrastructure

These reduce outside risks while making the cement cheaper to produce, faster, and with less outside risk. 

4. Green Portland Slag Cement is the Main Product

JSW Cement produces Portland Slag Cement almost exclusively, which contains 50-60% waste slag.

This is useful because:

• Production costs are lower

• The carbon footprint is reduced

• Can attract government projects and ESG initiatives.
  
  

5. Revenue From Own Group - Limited Selling Outside

As noted by RHP, JSW Group companies are significant purchasers of JSW Cement.

As a result:

• Sales for JSW Cement are not exclusively from outside buyers.

• Cement sales will decline if other JSW companies stop purchasing.

 

6. Profits From New Business Still Not Realized

New businesses of JSW Cement included:

• Production of Ready-Mixed Concrete (RMC).

• Wall Putty manufacturing.

• Construction chemicals.

But-

• They are not yet profitable.

• Small in scale.

• Primarily serve branding purposes, not revenue.
  
  

7. Solar & Waste Heat Recovery Plants = High Setup Cost But Low or No Profits

JSW claims to use solar and waste heat recovery (WHR) for energy efficiency purposes.

But-

• RHP does not show any cost vs. savings data to support their claims.

• The initial setups are solar and WHR.

• Significant profits could be realized after 3-4 years.
  
  

8. Port Terminals Are Underutilized

To use for bulk transportation of cement, JSW built large port terminals in Mumbai and Cochin. But-

• Currently, these are underused.

• High running costs.

• If volumes do not increase, they may become loss-making assets.
  
  

9. Cement is Not the Whole Business Now

Their income comes from more than just cement:

Product	FY25 (%)	FY24 (%)	FY23 (%)
Cement	54.16%	55.73%	48.49%
GGBS	33.07%	31.26%	23.43%
Limestone	-	-	9.80%
RMC	5.91%	3.65%	3.02%
Clinker	1.89%	3.08%	6.43%
Others	1.20%	1.27%	3.05%
Screen Slag	0.06%	0.52%	0.73%

The drop in clinker sales has led to increased internal consumption of clinker.  

The disappearance of limestone income might suggest possible captive usage or resource exhaustion.

Business Summary:

Positives:

• Future prospects for green cement are appealing. 

• Strong backing from JSW Group. 

• Extensive plant coverage across India.  

Negatives:

• The majority of sales are coming from within the corporate family. 

• New ventures are not generating profit. 

• Underperforming infrastructure projects, including ports.

• High costs for green energy initiatives.

 

Industry Outlook

Domestic cement demand increased from Fiscal 2020 to 2025 at a robust ~7% CAGR. From fiscal 2026 to fiscal 2030, CRISIL Intelligence projects that cement demand will grow at a compound annual growth rate (CAGR) of 7.5-8.5%.

 

If you want to apply for the IPO, click to open a Demat Account.

Company Financial 

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	12,003.94	11,318.91	10,218.61
Total Revenue	5,914.67	6,114.60	5,982.21
PAT	(163.77)	62.01	104.04
EBITDA	815.32	1,035.66	826.97
Net Worth	2,352.55	2,464.68	2,292.10
Reserves and Surplus	1,287.31	1399.06	1,296.66
Total Borrowing	6,166.55	5,835.76	5,421.54

 

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Net Cash Flow In Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	7,366.83	14,077.06	6,531.58
Net Cash Flow Investing Activities	(5,580.32)	(11,198.07)	(17,929.12)
Net Cash Flow Financing Activities	(2,317.65)	(2,208.73)	10,410.01

 

Revenue Bifurcation 

Volumewise Breakdown

 

Sector-wise Revenue Bifurcation

(Source RHP)

The Objective of The Issue

• Financing the company's working capital needs.

• Prepayment or partial or complete payback of all or a portion of specific outstanding loans that the company has obtained.

• General corporate purposes.

Click to check the IPO application status.

Listed Peers of JSW Cement Ltd.

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
UltraTech Cement Limited	10	205.30	59.56
Ambuja Cements Limited	2	17	35.97
Shree Cement Limited	10	311.18	97.77
Dalmia Bharat Limited	2	36.42	60.39
JK Cement Limited	10	111.44	58.39
The Ramco Cements Limited	1	11.53	103.50
India Cements Limited	10	153.23	2.38

 

Valuation

Metric	Value
ROE	-6.90
ROCE	7.05%
Debt/Equity	0.98
PAT Margin	-2.77%
EBITDA	13.78%
Price to Book Value	6.16
RoNW	-4.85%

 

Evaluation of P/E Ratio

Considering the period of FY 2025, with an EPS of Rs. (1.16) from the last year, the resulting P/E ratio is NA. Hence, comparison would not be effective because of negative EPS.

Explore the Highway Infrastructure IPO.

IPO's Strengths 

• In terms of both installed grinding capacity and sales volume, the company is the cement manufacturer in India with the fastest rate of growth.

• The company has a track record of growing its business and is the biggest producer of GGBS in India.

• Strategically placed facilities that are close to important markets for consumption and sources of raw materials.

• Among its peer cement manufacturing enterprises and the leading cement manufacturing companies worldwide, the company has the lowest carbon dioxide emission intensity.

• Extensive distribution and sales network in India with an emphasis on a powerful brand.

 

 

IPO’s Weaknesses

• For the production of its green cement, JSW Cement mostly relies on JSW Steel's slag, a steel byproduct. However, there is no legally binding long-term agreement in existence. Raw material costs and margins could be significantly impacted if JSW Steel changes its waste management practices or the terms of the slag supply change.

• With some financial financing, JSW Cement is pursuing aggressive capacity expansion up to 25 MTPA as of the RHP. Due to the company's heavy debt load, cash flow and profitability may be impacted by project delays or cost overruns.

• A significant amount of income comes from JSW Group companies (such as JSW Steel and Infra). This raises the possibility of reliance. The topline may unexpectedly diminish if linked party terms alter or intra-group demand declines.

• Western India accounts for 37% of its total income.  Any slowdown in the development or infrastructure of Gujarat or Maharashtra could affect the amount of revenue.
  
  

JSW Cement IPO GMP 

JSW Cement IPO GMP today is Rs. 21 as of 04 Aug 2025, while writing this information. Hence, with the upper price of Rs. 147, its estimated listing price might be Rs. 168 (Upper price + Current GMP).

JSW Cement Limited IPO Summary

IPO Opening & Closing Date	Aug 07, 2025 to Aug 11, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 139 to Rs. 147
Lot Size	102 Shares
Issue Size	24,48,97,958 Shares (Rs. 3600 Cr)
Offer for Sale	13,60,54,421 Shares (Rs. 2000 Cr)
Fresh Issue	10,88,43,537 Shares (Rs. 1600 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

JSW Cement IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (102 Shares) amounting to Rs. 14994 and 13 Lots (1326 Shares) amounting to Rs. 194922, respectively, while for S-HNI investors, the minimum Lot is 14 (1428 Shares) amounting to Rs. 209916.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
SHNI (Minimum)	14 Lots
SHNI (Maximum)	66 Lots
BHNI (Minimum)	67 Lots

 

JSW Cement IPO Reservation

 

JSW Cement IPO Lead Managers

• JM Financial Limited.

 

 

Dividend Policy

The company has paid a dividend of Rs. 0.01 per share in the last three years.

Conclusion

The JSW Group and a robust pan-India presence support the green cement development story presented by JSW Cement IPO. Its low-profit verticals and significant internal dependency create concerns, despite its ESG orientation and potential for future carbon credits being advantages. Underutilized assets and high infrastructure capital expenditures could affect short-term earnings.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Click Here To Stay Updated With The Upcoming IPOs.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.