JSW Cement Sets Stage for Major IPO with Sebi Approval

JSW Cement, under the Sajjan Jindal-led JSW Group, has secured approval from Sebi to proceed with a Rs 4,000 crore IPO. The offering includes a Rs 2,000 crore fresh issue and a Rs 2,000 crore Offer-for-Sale. The proceeds will support new cement unit development and debt repayment initiatives.

JSW Cement, a prominent entity under the Sajjan Jindal-promoted JSW Group, has received a green light from the Securities and Exchange Board of India (Sebi) to raise Rs 4,000 crore through an initial public offering (IPO). This significant development was noted in an update from the markets regulator earlier this week.

The IPO plans entail a fresh equity share issue worth Rs 2,000 crore, accompanied by a Rs 2,000 crore Offer-for-Sale (OFS) by investor shareholders. As outlined in the Draft Red Herring Prospectus (DRHP) submitted in August last year, key shareholders such as AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd are set to sell shares worth Rs 937.5 crore each, alongside a Rs 125 crore divesture by the State Bank of India (SBI).

According to the draft papers, Rs 800 crore from the IPO proceeds will finance a new integrated cement unit in Nagaur, Rajasthan. Additionally, Rs 720 crore will go toward repaying outstanding borrowings. The remaining funds are earmarked for general corporate purposes. As of March 2024, JSW Cement's liabilities stood at Rs 8,933.42 crore, while its revenue for FY24 reached Rs 6,028.10 crore. The company aspires to expand its capacity from 20.60 MTPA to 60 MTPA in the coming years.

(With inputs from agencies.)