This article delves into the JSW Cement IPO’s subscription status after the close of Day 2, analyzing the activity of Qualified Institutional Buyers (QIBs), exploring potential opportunities for retail investors, and examining the reasons behind the observed Grey Market Premium (GMP) trends.
Key Details of JSW Cement IPO
The JSW Cement IPO opened for subscription on August 7th. The second day for applications was August 8th, with the final day set for August 11th. The company’s shares have a face value of ₹10, and the price band is set at ₹147 per equity share (upper price band). Investors applying for the IPO must select a minimum lot size of 102 equity shares. The total issue size for the JSW Cement IPO is substantial, amounting to approximately ₹3600 Crore. A significant portion, 35%, of the shares is reserved for retail investors, which may increase the chances of allotment for this category.
Anchor Investor Participation: A Strong Foundation
Before the public offering, the JSW Cement IPO window for anchor investors was open on August 6th. Anchor investors were allocated equity shares worth ₹1080 Crore, totaling 7,34,69,386 shares. The lock-in period for these shares is structured in two parts: 50% of the shares can be sold after 30 days (around September 11th), and the remaining 50% after 90 days (around November 10th).
Notable anchor investors include SBI Mutual Fund, which was allocated approximately 10% of the total anchor investor shares. Specifically, SBI Flexicap Fund received 9.26% and SBI Magnum Fund received 1.67%. BlackRock Emerging Funds were allocated 10.19%, while NMRA received 4.63%. Other significant participants include Nippon L, UBS Funds Management (0.46%), Government of Singapore Fund (1.41%), Government Pension Fund Global (3.2%), and Tata Large Cap Funds (1.67%). Presence was also noted from Abu Dhabi Investment Authority Funds, Morgan Stanley India Equity Funds, Baroda BNP Paribas Funds, Societe Generale, and various schemes from PGIM India Trust Private Funds. An interesting presence was that of Axis Diversified Funds, whose past participation in IPOs has often indicated post-listing momentum. Goldman Sachs also participated as an anchor investor. In total, 20 different mutual funds participated through various schemes, making the anchor investor list appear strong.
JSW Cement IPO Day 2 Subscription Status Breakdown
After the close of Day 2, the JSW Cement IPO has not yet achieved full oversubscription in any category.
Qualified Institutional Buyers (QIB) Response
The QIB category saw a subscription of 0.26 times. For the 4,89,79,594 equity shares offered, bids were received for 1,25,15,82 shares, amounting to approximately ₹184 Crore. This response from QIBs on Day 2 did not continue the initial positive momentum seen on Day 1, which was 0.24 times.
High Net-worth Individuals (HNI) Category
The HNI category was subscribed 0.63 times. Against 3,67,00,000 equity shares offered, bids for 2,30,00,000 shares were received, totaling approximately ₹338 Crore. Within the HNI segment, the Big HNI category was subscribed 0.46 times (bids for 1,13,47,98 shares against 2,44,89,000 shares offered, valuing at ₹166 Crore), while the Small HNI category saw a subscription of 0.96 times (bids for 1,17,00,000 shares against 1,22,24,000 shares offered, valuing at ₹172 Crore).
Retail Investor Interest
Retail investors showed a subscription of 0.75 times. For the 8,57,00,000 equity shares reserved, bids were placed for 6,46,00,000 shares, amounting to approximately ₹950 Crore.
Overall Subscription Status
Overall, after the second day of bidding, the IPO was subscribed 0.58 times. Against 17,14,00,000 total equity shares, bids were received for 10,02,00,000 shares, with a total bid value of approximately ₹1473 Crore. The positive response that was initially expected has not materialized as strongly as anticipated.
Understanding QIB Strategy and Future Outlook
The observed response from Qualified Institutional Buyers (QIBs) indicates a cautious approach. A significant increase in subscription from QIBs is typically seen on the final day of the IPO, usually between 12 PM and 2 PM. The decision to apply for this IPO on the final day, August 11th, will likely be influenced by how QIBs react during this crucial window.
JSW Cement IPO Grey Market Premium (GMP) Update
Currently, the Grey Market Premium (GMP) for JSW Cement IPO is trading at ₹13. This suggests an expected listing price of approximately ₹160, indicating a potential listing gain of around 8.5% to 9% over the upper price band of ₹147.
Conclusion
The JSW Cement IPO has seen moderate subscription levels by the end of Day 2, with no category fully oversubscribed. While anchor investor participation was robust, the QIB and HNI categories are yet to see strong momentum. Investors looking to participate should closely monitor the subscription figures, especially QIB activity, on the final day, August 11th, before making their final decision.
