JSW Cement Shares Drop Over 5% After Market Debut: Key Highlights for Investors

Shares of JSW Cement had a mixed start on their stock market debut Thursday. After opening higher than expected, the stock lost momentum and ended the day in the red, falling over 5% from its listing price.

Listing Performance

• The stock was listed at ₹153 on the BSE, about 4.1% above its IPO price of ₹147, and at ₹153.50 on the NSE, a 4.4% premium.
• However, early gains were short-lived as the price slipped to an intraday low of ₹145.05 on both exchanges, down more than 5% from its opening levels.
• Despite this fall, the listing price was still slightly better than the grey market premium of ₹151, which had suggested around a 3% gain.

IPO Subscription and Demand

• The IPO of ₹3,600 crore received strong interest, being subscribed 7.77 times overall.
• Breakdown of demand:
  • Qualified Institutional Buyers (QIBs): 15.80 times
  • Non-Institutional Investors (NIIs): 10.97 times
  • Retail Investors: 1.81 times
• The allotment of shares was completed on August 12.

Fundraising Details

• The issue included a fresh sale of shares worth ₹1,600 crore (10.88 crore shares).
• Additionally, promoters sold 13.61 crore shares worth ₹2,000 crore under the Offer for Sale (OFS).
• Prior to the IPO, the company also raised ₹1,080 crore from anchor investors, which included well-known domestic and international institutions.

In Summary:

While JSW Cement’s IPO received strong demand, its listing day performance remained subdued. The stock started with a premium but quickly lost ground, closing below the opening level.