JSW Cement IPO: JSW Cement’s IPO of ₹ 3,600 crore has been completely subscribed on 11 August. This public issue has received mixed response from investors. According to NSE data, the IPO was subscribed 2.32 times by 12.25 pm. Non-institutional investor (NIIS) subscribed to its reserved part 1.64 times. The share of the retail investor was subscribed to 1.10 times. At the same time, the share of qualified institutional buyers (QIBS) was booked 1.11 times.
Complete information of JSW Cement IPO
This IPO has been brought to issue new shares worth ₹ 1,600 crore and to raise a total of ₹ 3,600 crore by the current shareholders through an offer for sale of ₹ 2,000 crore.
Price Band: ₹ 139 to ₹ 147 per share.
Dates of subscription: 7 August to 11 August.
Minimum Investment: Investors can bid for at least 102 shares, for which around ₹ 15,000 will have to be invested on the upper price band.
Listing: The allotment of shares is likely to be held on August 12 and the listing will be on BSE and NSE on August 14.
The company will use this amount to set up a new cement plant in Nagaur, Rajasthan and to repay some of its existing loans.
Should you invest in this IPO?
Experts’ opinion is divided about this IPO. Some experts believe that JSW Cement is a good option for those investors who have a long-term and who can take more risk. The company can avail India’s infrastructure development. At the same time, some brokerage firms have given ‘neutral’ ratings. He says that the IPO evaluation is quite high, and the company’s loss in FY 2025 is a matter of concern.
Gray market premium declines
Before the listing of the IPO, the company shares in the gray market are trading at ₹ 152 to ₹ 153 per share, which is about 3-4% more than the upper end of the IPO’s price band. This premium IPO was more than 6% of the second day of opening of IPO, which is currently very low which is indicating weak listing.