JSW Cement IPO Gets SEBI’s Nod After Four-Month Delay

India’s markets regulator SEBI has given the green light to JSW Cement’s initial public offering ( IPO ), according to a notification on the regulator’s website. The approval comes four months after the IPO was put on hold for undisclosed reasons, as per a Reuters report.

Details of the IPO Filing 
The cement-making arm of the steel-to-energy conglomerate JSW Group had filed for an IPO worth up to 40 billion rupees ($461.52 million) in August. The offering includes fresh shares worth 20 billion rupees, with existing shareholders selling shares of an equal amount, as mentioned in the Reuters report.

The IPO aims to capitalize on India’s robust stock market and rising demand for construction materials.

Record IPO Year and Market Outlook
The timing aligns with a buoyant market. In 2024, 91 large companies went public, collectively raising a record 1.6 trillion rupees via IPOs, according to analytics firm Prime Database. The bullish trend is expected to continue in 2025.

“The approval came later than expected but arrived at the right time for the company as investor focus now shifts towards capital expenditure allocations in the upcoming federal budget, which would bring sectors like cement under the spotlight,” said Mahesh Ojha, a research analyst at Hensex Securities, as quoted by Reuters.

Investor Sentiment and Sector Dynamics
The parent JSW Group’s strong reputation is expected to drive investor interest, particularly among institutions prioritizing long-term investments. “The parent group is well-known, so I expect strong investor interest in this IPO, especially from institutions for their long-term investment priorities,” Ojha added.

The cement sector has seen increased deal-making activity, highlighted by competition between UltraTech, owned by the Aditya Birla Group, and Adani-owned Ambuja Cements. However, challenges like subdued prices and demand slowdowns continue to weigh on the earnings of listed firms.
 
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