The final day of JSW Cement’s Rs 3,600 crore initial public offering is here. As the IPO is on its last day of bidding, all eyes are on one number and that is the grey market premium (GMP).
While investor interest has been steady, the premium has taken a sharp knock since the IPO opened, raising questions about whether the stock will make a strong debut on Dalal Street.
JSW Cement IPO: Subscription numbers
By the morning today, the IPO was subscribed 74% overall, according to NSE data. Retail investors were the most active, bidding for 94% of the shares reserved for them.
Non-Institutional Investors so far received a 93% subscription, while the Qualified Institutional Buyers’ portion was still at 24%.
JSW Cement IPO: GMP slips to just Rs 4
The biggest talking point around the JSW Cement IPO has been its falling grey market premium. On August 5, just before the bidding opened, the GMP was around Rs 19 per share.
But by August 7, the opening day, it cooled to Rs 6. As of the morning of August 11, it has dropped further to Rs 4, implying a listing price of about Rs 151, just 2.7% above the upper price band of Rs 147.
However, it is important to note that GMP is not an official indicator, and may fluctuate based on the market sentiment.
JSW Cement IPO: Issue details and price band
JSW Cement’s IPO comprises a fresh issue worth Rs 1,600 crore and an offer for sale of Rs 2,000 crore by existing shareholders.
The price band of this 17-year-old cement maker has been fixed at Rs 139 to Rs 147 per share.
Investors could apply for a minimum of 102 shares, which meant a ticket size of roughly Rs 15,000 at the upper price band. The bidding window opened on August 7 and closes today, August 11.
JSW Cement IPO: Where the money will go
From the fresh issue proceeds, JSW Cement plans to use about Rs 800 crore to part-fund a new integrated cement unit at Nagaur, Rajasthan. Another Rs 520 crore is placed for repaying or prepaying certain borrowings. The remaining funds will be used for general corporate purposes.
JSW Cement IPO: Allotment and listing
The basis of allotment is expected to be finalised on August 12, with shares scheduled to list on both NSE and BSE on August 14.
Investors keen to track their allotment can do so via KFin Technologies, NSE, or BSE’s allotment status portals by entering their PAN, application number, or demat details.