After receiving a subdued response on the first two days of bidding, the ₹3,600-crore initial public offering (IPO) of JSW Cement sailed through on the last day, aided by strong demand from qualified institutional buyers (QIBs) and non-institutional investors (NIIs).

The issue was overall subscribed 7.77 times as JSW Cement IPO attracted bids for 140.91 crore shares against the 18.13 crore shares offered across categories, the exchange data showed. The public issue, which opened for bidding on August 7, was booked 0.30 times on Day 1 and 0.59 times on Day 2.

The IPO was booked 15.80 times in the QIB segment and 10.97 times in the NII category, while the quota reserved for retail investor was booked 1.81 times.

According to exchange data, the QIB category saw the heaviest demand, receiving bids for 81.86 crore shares against 5.18 crore shares on offer. Within this segment, foreign institutional investors (FIIs) bid for 48.48 crore shares, mutual funds for 16.91 crore shares, and domestic financial institutions for 9.29 crore shares.

In the NII category, high-value bids (above ₹10 lakh) received 12.56 times demand, while non-institutional investors (bid amount of more than ₹2 lakh and up to ₹10 lakh) segment received 7.80 times bidding.

On the other hand, retail investors showed relatively modest interest, with bids for 16.42 crore shares against the 9.06 crore shares on offer, resulting in a 1.81 times subscription.

The IPO was a combination of a fresh issue of equity shares worth ₹1,600 crore and an offer-for-sale (OFS) of ₹2,000 crore, offered at a price band for ₹139-147 per share. Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding offloaded shares worth ₹937.50 crore each, while State Bank of India (SBI) pared its stake by ₹125 crore.

The lot size for an application was 102 and in multiples thereof.

Ahead of the opening of the public issue, the JSW group company raised ₹1,080 crore from anchor investors by allotting over 7.3 crore shares at the upper price band of ₹147 per equity share. Over 44% of the anchor book quota was allocated to nine domestic mutual funds, which applied through a total of 20 schemes. SBI Mutual Fund, SBI Life Insurance Company, Nippon Life India, Tata Mutual Fund, Motilal Oswal Mutual Fund, Aditya Birla Sun Life AMC, Baroda BNP Paribas MF, Edelweiss Life Insurance and others participated in the anchor book.

Out of the fresh equity capital, JSW Cement aims to use ₹800 crore for funding the cost of establishing a new integrated cement unit at Nagaur (Rajasthan), and ₹720 crore to repay debts availed by it. A part of the capital will be utilised to meet general corporate purposes. As of March 31, 2024, the total debt under the various financing arrangements of the company stood at ₹5,835.76 crore.

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