-SEBI lifts abeyance on JSW Cement’s IPO, expected to proceed within 30-60 days.
-IPO aims to raise ₹4,000 crore; split between a ₹2,000 crore fresh issue and ₹2,000 crore offer for sale (OFS).
-Funds to be used for a new cement unit in Rajasthan and debt reduction.
SEBI Clears the Way
The Securities and Exchange Board of India (SEBI) has greenlit JSW Cement Ltd.’s long-pending initial public offering (IPO), ending a phase of uncertainty. This marks a significant milestone, as the offering, paused in September 2024 without explanation, is now set to proceed through the regulatory process. Final approvals are anticipated within 30 to 60 days.
The IPO Blueprint
JSW Cement filed its draft prospectus in August 2024, outlining plans to raise approximately ₹4,000 crore. The offering includes a fresh issue of ₹2,000 crore and a ₹2,000 crore OFS, allowing investors such as State Bank of India, AP Asia Opportunistic Holdings Pte., and Synergy Metals Investments Ltd. to offload their stakes.
Strategic Utilization of Funds
From the ₹4,000 crore proceeds, ₹800 crore is earmarked for setting up a new cement unit in Nagaur, Rajasthan. Additionally, a portion of the funds will be used to reduce corporate debt, strengthening the company’s financial position.
Growth and Portfolio Strength
JSW Cement boasts a diverse portfolio, including products such as portland slag cement, ordinary portland cement, and Concreel HD. With an annual production capacity of 20.6 million metric tonnes (as of March 2024), the company plays a vital role in the building materials value chain, encompassing cement manufacturing and construction chemicals.
IPO Management and Key Partners
The IPO will be jointly managed by a consortium of top financial institutions, including JM Financial Ltd., Axis Capital Ltd., Citigroup Global Markets India Pvt., and Goldman Sachs (India) Securities Pvt. KFin Technologies has been appointed as the registrar for the offering.
The public listing of JSW Cement is poised to be a landmark event, unlocking new growth opportunities and providing a lucrative exit for early investors.
