JSW Cement, a leading cement manufacturer in India and a part of the JSW Group, has received approval from SEBI to raise ₹4,000 crore through an initial public offering (IPO). This news comes after the company filed its IPO papers in August 2024. The IPO will consist of a mix of fresh issue of shares worth ₹2,000 crore and an offer for sale of ₹2,000 crore by existing investors.
The offer for sale includes contributions from AP Asia Opportunistic Holdings, Synergy Metals Investments Holding, and State Bank of India. Additionally, the company may consider a further issue of equity shares through a preferential offer or other methods for ₹400 crore as a pre-IPO placement.
JSW Cement intends to utilize the funds raised from the IPO for various purposes, including financing the establishment of a new integrated cement unit in Nagaur, Rajasthan, and prepaying outstanding borrowings. The company has ambitious plans to increase its manufacturing capacity to 60 MTPA from the current 19 MTPA.
In terms of performance, JSW Cement has been outpacing the industry average with a 31% rise in sales volume in FY23. The company’s installed grinding capacity and sales volume have seen a compound annual growth rate of 14% and 19% respectively, compared to the industry averages of 7% and 8%.
The book running lead managers for the IPO include JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital, and SBI Capital Markets. KFin Technologies will serve as the registrar to the offer, and the equity shares will be listed on BSE and NSE.
Overall, JSW Cement’s IPO approval by SEBI is a significant development for the company as it seeks to expand its operations and solidify its position in the cement industry. Investors and stakeholders will be closely watching the company’s growth trajectory as it moves forward with its expansion plans.
