Dip in JSW Cement Shares: Stock Falls Beneath Initial Price of Rs 147 Following Debut at 4% Premium
In the bustling world of Indian business, JSW Cement has made a significant mark post its IPO listing in August 2025. The cement manufacturer, known for its commitment to green infrastructure and eco-friendly solutions, has shown a positive momentum in the market.
The stock, initially priced at ₹147, made its market debut at Rs 153 on both the BSE and NSE, a 4.4% increase. Since then, the share price has fluctuated within a range of ₹144 (52-week low) to ₹159 (52-week high), closing at ₹153.15 on August 22, 2025.
The IPO was highly subscribed overall, with a subscription of over 8 times, indicating strong institutional and retail interest. The funds raised are being utilised for capacity expansion in Rajasthan, debt repayment, and general corporate purposes.
As of late August 2025, JSW Cement's market capitalization stood around ₹20,880 crore. The company's financial metrics show a modest return on capital employed (ROCE) of 4.64%, but a negative return on equity (ROE) of -4.81%, indicating room for improvement post-listing. The company has no dividend yield at present, and some concerns exist about a low interest coverage ratio and capitalizing interest costs.
Despite these financial concerns, most IPO market experts have rated the IPO as 'Subscribe for long-term'. JSW Cement is recognised as one of India's fastest-growing and most sustainability-focused cement manufacturers. The company positions itself as a leader in producing eco-friendly cement solutions such as Portland Slag Cement (PSC) and Ground Granulated Blast Furnace Slag (GGBS), aligning with India's decarbonization goals.
DR Choksey, a brokerage house, believes that the offer was made at around 36.7 times post-IPO EV/EBITDA (FY25), making the issue appear aggressively priced. However, the issue price is considered fully priced-in at current levels by DR Choksey.
In conclusion, JSW Cement's market reception has been generally positive, with near-term valuation aligned with the company’s growth plans and green cement positioning. However, financial performance still appears to be stabilising post-IPO. The company's focus on green infrastructure and eco-friendly solutions, coupled with robust growth opportunities, positions JSW Cement well for the future.
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