Mumbai, Aug 14 (IANS) JSW Cement’s stock closed around 5 per cent lower on Thursday on its first day of trading, despite a strong response to its Rs 3,600 crore initial public offering (IPO).

The shares opened at Rs 153 on the BSE, 4.1 per cent higher than the issue price of Rs 147, and at Rs 153.50 on the NSE, a 4.4 per cent premium.

However, the gains faded quickly, with the stock touching an intra-day low of Rs 145.05 on both exchanges and ending the session in negative territory.

The IPO, open between August 7 and August 11, received over 12.75 lakh applications.

It was subscribed 15.80 times in the qualified institutional buyers (QIBs) category, 10.97 times by non-institutional investors, and 1.81 times by retail investors.

The issue consisted of a Rs 1,600 crore fresh share sale and a Rs 2,000 crore offer for sale (OFS), with a price band of Rs 139-147 per share and a lot size of 102 shares.

Post-listing, JSW Cement’s market capitalisation at the upper price band stood at Rs 20,041 crore. The promoters’ stake reduced from 78.61 per cent to 72.33 per cent after the IPO.

The company plans to use the proceeds to set up a new integrated cement plant in Nagaur, Rajasthan, repay Rs 520 crore in debt, and meet general corporate expenses.

Founded in 2009, JSW Cement is among the fastest-growing cement makers in India and ranks in the top 10 by installed capacity and sales volume.

JSW Cement, founded in 2009, is among India’s fastest-growing cement manufacturers and ranks in the top 10 by installed capacity and sales volume.

Despite the muted listing, the company’s long-term growth prospects remain tied to its expansion plans and strong position in the cement market.

–IANS

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