The company plans to deploy Rs 800 crore to part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan
MUMBAI, Jan 13 (The CONNECT) – JSW Cement Limited, part of the multinational conglomerate JSW Group, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 4,000 crore through an initial public offering (IPO).
The Company filed its IPO papers with Sebi on August 16, 2024.
The IPO, with a face value of ₹10 each, is a mix of fresh issue of shares up to Rs 2000 crore and an offer for sale (OFS) of up to Rs 2000 crore by Investor Selling Shareholders.
The offer for sale consists of up to Rs 937.50 crore by AP Asia Opportunistic Holdings Pte. Ltd., up to Rs 937.50 crore by Synergy Metals Investments Holding Limited, and up to Rs 125 crore by State Bank of India.
The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a preferential offer or any other method aggregating to Rs 400 crore as Pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.
The company plans to deploy Rs 800 crore to part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan; Rs 720 crore for prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company; and general corporate purposes.
JSW Cement is the fastest-growing cement manufacturing company in India in terms of increased installed grinding capacity and sales volume from Fiscal 2014 to Fiscal 2024, according to a CRISIL Report. From Fiscal 2023 to Fiscal 2024, It was also one of the fastest growing cement manufacturing company in terms of sales volume within India among the top 10 cement manufacturers by installed capacity.
The Company achieved a 31.11% rise in sales volume in Fiscal 2023, excluding sales from JSW Cement FZC, significantly outpacing the industry average growth of 6.35%, according to the CRISIL Report.During this period, JSW Cement’s installed grinding capacity and sales volume grew at compound annual growth rates (CAGR) of 14.14% and 19.06%, respectively, compared to the industry averages of 7.31% and 7.56%, as reported by CRISIL.
JSW Group has diversified businesses across various sectors such as steel, energy, maritime, infrastructure, defence, business-to-business e-commerce, realty, paints, sports and venture capital.
JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DAM Capital Advisors Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
