JSW Cement share price fell over 3% on Thursday’s following a muted debut on the bourses. JSW Cement share price opened with a premium over 4% compared to the issue price of ₹147 on Thursday. The stock opened at ₹153, reflecting a 4% increase from the issue price on the BSE. Subsequently, it rose by 5.23% to reach ₹154.70.
At the NSE, it started trading at ₹153.50, marking a premium of 4.42%. The company’s market capitalization was recorded at ₹20,914.02 crore.
The initial public offering of JSW Cement Ltd, which is part of the diversified JSW Group, achieved a subscription rate of 7.77 times by the closing day of the share sale on Monday.
The price band for the company’s IPO was set between ₹139 and ₹147 per share.
Arun Kejriwal, founder of Kejriwal Research and Investment Services, mentioned that the stock began trading five and a half rupees higher. However, it has since declined and is now trading a rupee and a half above the issue price. So, what should investors who applied for it do? It’s somewhat stagnant—you’re not gaining or losing.
For those who applied with a medium-term perspective, it’s best to maintain your position. If you applied with the expectation of a quick profit, there might be some letdown since you aren’t seeing any gains. In that case, it’s advisable to set a trading stop-loss, especially if the price falls below ₹145.
For individuals who didn’t apply or are uncertain about their next steps, it’s wise to wait a bit longer because the stock isn’t inexpensive by any means. It has potential, but it needs to capitalize on that to generate profits, believes Kejriwal.
Shivani Nyati, who heads Wealth at Swastika Investmart, stated that JSW Cement’s stock debuted at ₹153.50, approximately 4% higher than its issue price, indicating a flat listing. The company is among the top 10 cement manufacturers in India and is vigorously working to expand its reach nationwide through both greenfield and brownfield initiatives, aiming to double its grinding capacity.
However, its revenue growth and profit after tax have displayed inconsistencies over the last three years.
Given its current growth phase, the company’s elevated valuation and ongoing losses may result in short-term fluctuations in returns. Investors who participated in the public offering for listing gains should set a stop loss at ₹138 and await possible upside, while those with a medium- to long-term outlook might think about holding onto the stock for future growth.
JSW Cement IPO details
JSW Cement IPO included a fresh issuance of shares worth ₹1,600 crore and an additional ₹2,000 crore through an Offer-For-Sale (OFS).
As per the draft documents, the company plans to allocate ₹800 crore to partially finance a new integrated cement facility in Nagaur, Rajasthan, and ₹520 crore for debt repayment, while the remaining funds will be used for general corporate purposes.
The book-running lead managers for the offering are JM Financial Ltd, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company, and SBI Capital Markets.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
