JSW Cement IPO Overview

Company Background:

JSW Cement Limited, incorporated in 2006, is a part of the renowned JSW Group and is focused on manufacturing eco-friendly, sustainable cement products. The company operates seven manufacturing units across India. Operational Highlights

• Manufacturing Presence: 7 plants across India including 1 integrated unit, 1 clinker unit, and 5 grinding units.

• Total Installed Grinding Capacity (as of Mar 31, 2025): 20.60 MMTPA

• Southern India: 11.00 MMTPA

• Western India: 4.50 MMTPA

• Eastern India: 5.10 MMTPA

Distribution Network (as of Mar 31, 2025):

• Dealers: 4,653

• Sub-dealers: 8,844

• Warehouses: 158
  

Product Portfolio:

• Cement: Blended Cement, Ordinary Portland Cement

• GGBS: Ground Granulated Blast Furnace Slag

• Clinker: Core input in cement manufacturing

• Allied Products: Ready Mix Concrete (RMC), Screened Slag, Construction Chemicals

Objects of the Issue

• Setting up a new integrated cement unit: ₹800 Cr

• Prepayment/repayment of existing borrowings: ₹520 Cr

• General corporate purposes: ₹2,280 Cr
  

Strengths:

1. Backed by the JSW Group, offering strong financial and strategic support.

2. Diverse product range across cement, slag, RMC, and construction chemicals.

3. Strong presence in South & East India; expansion underway in North India.

4. Efficient operations supported by captive power and waste heat recovery.

5. Focus on sustainable and cost-effective production, leveraging by-products like slag/fly ash.

Risks & Concerns:

1. Net Loss in FY25: Despite stable revenue, the company posted a loss, suggesting margin pressure or increased costs.

2. Rising Borrowings: Total borrowings increased to ₹6,166 Cr in FY25 (up ~14% in 2 years), raising concerns on debt servicing capability.

3. Declining Profitability: PAT dropped significantly from ₹104 Cr (FY23) to -₹164 Cr (FY25), with declining EBITDA as well.

4. High Capital Intensity: Future expansion will require substantial capital; any delays or cost overruns may impact financials.

5. High Related Party Transactions: Heavy reliance on JSW Group entities could lead to governance and conflict of interest risks.

6. Environmental Compliance: Being a heavy industry, it is vulnerable to stricter regulatory norms that may increase operational costs.

7. Cyclical Industry Exposure: The cement sector is highly sensitive to economic cycles, real estate activity, and government infra spending.

8. Working Capital Stress: High asset base and borrowing levels indicate capital lock-in; any mismatch in receivables/payables could tighten liquidity.

9. Market Competition: Presence of large players like UltraTech, Shree Cement, Dalmia Bharat, and regional giants puts pricing pressure on JSW Cement.

   
   

JSW Cement IPO: Key Details

• IPO Dates: 7 to 11 Aug 2025

• Price Band: ₹139 to ₹147 per share

• Lot Size: 102 Shares

• Total Issue Size: 3,600.00 Cr

• Fresh Issue: 1,600.00 Crs

• Offer for Sale: 2,000 Crs

• Retail Quota: 35%

• Grey Market Premium (GMP): 5% (Only for Information)

Allotment Link

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