JSW Cement is ready for its Dalal Street debut. After months of delays and a scaled down plan, the Sajjan Jindal-led company is set to open its Rs 3,600 crore IPO on August 7.
But, the main question now many might have is – Is this just another cement IPO or a high stakes opportunity in the making? Let’s take a look at the big details of this upcoming issue.
JSW Cement IPO: IPO trimmed, but still substantial
JSW Cement initially planned a Rs 4,000 crore issue, but the final offer has been scaled down to Rs 3,600 crore, according to its latest filings.
Of this, Rs 1,600 crore is a fresh issue which is Rs 400 crore less than originally intended. On the other hand, Rs 2,000 crore will come through an offer for sale (OFS) by existing investor-shareholders.
The IPO will remain open for bidding till August 11, with the anchor investor portion opening a day earlier on August 6.
After the bidding process, the allotment of shares is expected to be finalised by August 12, and the listing is scheduled for August 14 on both the BSE and NSE.
JSW Cement IPO: Why the IPO was delayed
The IPO was initially expected in 2024 but hit a regulatory roadblock. After filing its draft papers in August 2024, the IPO was kept on hold by SEBI in September. It finally received a green light in January 2025, giving the company the go-ahead to proceed.
JSW Cement IPO: What the company plans to do with the funds
A major chunk of the fresh issue, that is Rs 800 crore will go into building a new integrated cement plant in Nagaur, Rajasthan.
Another Rs 520 crore is placed for debt repayment, while the remaining funds will support general corporate expenses.
JSW Cement IPO: Backed by big names and key players of the issue
Behind JSW Cement’s IPO are some heavyweight private equity investors, including Apollo Global and Synergy Metals Investments Holding. The latter is run by Sudhir Maheshwari, a former ArcelorMittal executive and founder of the Synergy Metals & Mining Fund.
The IPO is being managed by a line-up of investment banks, including JM Financial, Axis Capital, Citigroup, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital, and SBI Capital Markets, who are acting as the book-running lead managers. The registrar to the issue is KFin Technologies.
JSW Cement IPO: Key risks
Some of the key risk mentioned by the company in the DRHP filing include –
“Our business depends on our ability to mine and procure sufficient limestone for our operations. Our inability to do so on reasonable terms, or at all, could have an adverse impact on our business, financial condition, and results of operations.”
“We depend on adequate and uninterrupted availability of power and fuel for our operations, and any failure to do so may have an adverse impact on our operations.”
“If we fail to maintain or increase the utilisation levels of our plants, our business, future prospects and financial performance could be materially and adversely affected.”
“We do not own the JSW trademark, and our ability to use the trademark, name and logo may be impaired. Any reputational damage to this trademark or the JSW Group, name or logo could have an adverse effect on our financial condition, cash flows and results of operations.”
JSW Cement IPO: Competition watch
As of March 2025, JSW Cement operates seven plants with a grinding capacity of 20.60 million tonnes per annum (MMTPA) and a clinker capacity of 6.44 MMTPA.
Through a mix of greenfield and brownfield projects, the company plans to almost double these numbers to 41.85 MMTPA and 13.04 MMTPA, respectively.
This helped JSW Cement compete with heavyweights like UltraTech Cement, Ambuja Cements, Shree Cement, Dalmia Bharat, and JK Cement, which currently dominate India’s fragmented but fiercely competitive cement market.