Latest News

India's JSW Cement makes a 4% gain in its debut, with a valuation of $2.38 billion

JSW Cement shares debuted at 4% higher than their previous price on Thursday, valuing it at $2.38 Billion. Investors looked past the broader market turmoil to support the company's expansion plans for capacity and its push into new markets.

The stock was listed on the National Stock Exchange at 153.50 Rupees, just over its target of $2.3 billion and above its original issue price of 147 Rupees. As of 10:21 am IST, it was up 2.7% to 151.06 rupies.

India is the second largest cement producer in the world. The government's push for infrastructure and housing will drive demand growth over the next decade. Prices are also expected to rebound from the multi-year lows they hit during the last fiscal year.

JSW Cement is a smaller player than other companies in the industry, such as Aditya Birla's UltraTech Cement or Gautam Adani's Ambuja Cement.

In its prospectus, the company stated that it would use the proceeds of the IPO to build a factory in Rajasthan, a state rich in limestone.

Ventura Securities stated that JSW Cement’s capacity ramp-up would expand its reach, boost profits and offer brand strength. Its ties to JSW Group also provide easy access to raw material like slag, power and steel via group companies such as energy, marine infrastructure and steel.

JSW Group owns a stake of nearly 70% in the cement manufacturer.

This week, the $413 million initial offering was nearly eight times oversubscribed. Institutional investors' bids were almost 16 times higher than their quota.

(source: Reuters)