JSW Cement Files for Rs 4,000 Crore IPO

JSW Cement has submitted preliminary documents to Sebi for a Rs 4,000 crore IPO. The IPO includes a fresh issue of Rs 2,000 crore and an offer for sale of Rs 2,000 crore by investors. Funds will be used for a new cement unit, debt repayment, and corporate purposes.

JSW Cement on Friday took a significant step by filing preliminary papers with capital markets regulator Sebi to raise Rs 4,000 crore through an initial public offering (IPO).

The IPO consists of a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale (OFS) of Rs 2,000 crore by existing investor shareholders, as per the draft red herring prospectus (DRHP).

Among those participating in the OFS, AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd will sell shares worth Rs 937.5 crore each, while State Bank of India (SBI) will divest shares valued at Rs 125 crore.

Proceeds from the fresh issue will be allocated as follows: Rs 800 crore for the establishment of a new integrated cement unit in Nagaur, Rajasthan, Rs 720 crore for debt repayment, and the remainder for general corporate purposes.

Part of the diversified JSW Group, JSW Cement has varied business interests, including sectors like steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports, and venture capital.

With a current manufacturing capacity of 19 MT annually, JSW Cement aims to achieve a capacity of 60 MTPA. The company operates manufacturing units in Karnataka, Andhra Pradesh, West Bengal, Odisha, and Maharashtra, and, through its subsidiary Shiva Cement, runs a clinker unit in Odisha.

Managing the IPO process for JSW Cement are JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.