JSW Cement IPO Grey Market Premium Sees Volatile Trends Amid Strong Subscription

JSW Cement's initial public offering (IPO) has garnered significant investor interest, with subscription rates reaching nearly 8 times on the final day of bidding, reflecting robust demand in the primary market.

The IPO, aimed at raising ₹3,600 crore through a fresh issue and offer for sale, was fully subscribed by day three. Retail investors actively participated, with a 94% subscription in the retail portion, and Non-Institutional Investors (NIIs) showing strong interest, subscribing nearly 1.85 times their allocation. Qualified Institutional Buyers (QIBs) subscribed at a more cautious pace but made up 50% of the allocation overall.

In the grey market, where shares are traded unofficially before formal listing, the premium or Grey Market Premium (GMP) showed a downward trend throughout the IPO period. Initially, the GMP was around ₹19 per share before bidding started, but it declined to approximately ₹2 to 5 near the closing days. This indicates a modest premium of about 1.4% to 3% over the upper price band of ₹147, where shares are expected to list around ₹151.

Market experts suggest that the falling GMP reflects a tempered investor sentiment, possibly due to the company's reported net loss of ₹163.77 crore for the fiscal year ending March 2025, despite maintaining strong revenue figures and strategic growth plans.

JSW Cement plans to utilize the IPO proceeds to fund a new integrated cement unit in Nagaur, Rajasthan, repay ₹520 crore of debt, and cover general corporate purposes. The company, known for its substantial installed grinding capacity of 20.60 million metric tonnes per annum and leadership in the green cement sector, aims to consolidate its position among the top 10 cement companies in India by market capitalisation post-IPO.

Listing on both NSE and BSE is tentatively scheduled for August 14, 2025, with investors closely monitoring the price discovery and listing performance, particularly given the mixed signals from the grey market premiums and strong subscription data.