JSW Cement IPO Day 1 Review: Low Subscription, Weak Grey Market Sentiment

by Priya Bhatiya

Posted on August 7, 2025

JSW Cement IPO Day 1 Highlights (August 7, 2025)

Subscription Status:

• The JSW Cement IPO opened for public subscription on August 7, 2025, and will remain open until August 11, 2025.
• As of the latest available update on Day 1, the IPO was subscribed only about 6%, indicating limited early participation across investor categories so far.
• The public issue targets to raise ₹3,600 crore, comprising a fresh issue of ₹1,600 crore and an offer-for-sale (OFS) of ₹2,000 crore. The price band has been set between ₹139 and ₹147 per share, with a minimum lot size of 102 shares (minimum application amount around ₹14,994).

Grey Market Premium (GMP):

• The GMP for JSW Cement IPO has seen a significant decline as of Day 1.
  • Reports show the GMP dropped to between ₹6–₹8 per share on August 7, down from ₹14 a day earlier, and well below the ₹19–₹20 premium seen at the start of the week.
  • This suggests a potential listing price of between ₹153 and ₹155 per share, reflecting a listing gain in the 4–5.4% range over the upper issue price.
  • Drop in GMP reflects cautious market sentiment, valuation concerns, and some brokerages urging investors to be wary of expensive pricing and inconsistent profitability.

Issue Structure & Listing Timeline:

• The IPO will close on August 11, 2025.
• Allotment of shares is expected to be finalized on August 12, with refunds/credit of shares to demat accounts by August 13.
• Listing of JSW Cement shares is tentatively set for August 14 on both NSE and BSE.

Key Analyst Takeaways:

• Strong anchor interest: JSW Cement already raised ₹1,080 crore from anchor investors such as BlackRock, Nomura, and the Government of Singapore before listing, reflecting institutional confidence in the company.
• However, brokerage opinions are mixed. While some point to JSW Cement’s scale and growth prospects, others caution about:
  • High valuation (EV/EBITDA of 31–32x, P/E negative or high)
  • Inconsistent recent profitability (net loss in FY25 after profit in FY24)
  • Fluctuating grey market sentiment.

Investor Actions:

• Investors interested in applying can do so through their ASBA-enabled bank accounts or via IPO forms until August 11.
• Caution is advised, especially given the lower-than-expected early subscription and the cooling off in the grey market premium.

Summary Table: JSW Cement IPO Day 1 Key Facts

Note:

• GMP (Grey Market Premium) is unofficial, fluctuates quickly, and is only a speculative indicator.
• Day 1 subscription figures are typically preliminary and may change as investor interest picks up during the remaining days of the IPO window.

Ref: JSW Cement IPO Day 1 Live: Issue subscribed 6% so far. Check GMP, subscription status, more