JSW Cement, part of Sajjan Jindal-promoted diversified JSW Group, has received go ahead to raise Rs 4,000 crore through an initial public offering (IPO), according to an update with the markets regulator, Securities and Exchange Board of India (SEBI) showed on January 13.
The initial share sale comprises a fresh issue of equity shares worth Rs 2,000 crore and an Offer-for-Sale (OFS) of Rs 2,000 crore by investor shareholders, according to the Draft Red Herring Prospectus (DRHP) filed in August 2024.
As a part of the OFS, AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd will offload shares worth Rs 937.5 crore each, and State Bank of India (SBI) will divest shares valued at Rs 125 crore.
JSW Cement had filed preliminary IPO papers with SEBI in August 2023 and later in September, the regulator had kept the company’s proposed initial share-sale on hold.
On January 6, the regulator finally gave its observation. In SEBI’s parlance, its observation means go ahead for companies to float public issues.
As per draft papers, the company will utilise proceeds worth Rs 800 crore on part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan and Rs 720 crore on prepayment or repayment of outstanding borrowings availed by it. The rest would be used for general corporate purposes.
As of March 31, 2024, JSW Cement’s total liability was at Rs 8,933.42 crore.
On the financial front, the company’s revenue from operations for FY24 stood at Rs 6,028.10 crore. This was Rs 5,836.72 crore in FY23 and Rs 4,668.57 crore in FY22. Its profit was Rs 62 crore in FY24 and Rs 104 crore in FY23.
As of March 31, 2024, it has an installed grinding capacity of 20.60 MTPA (million tonnes per annum) and has an ambition to reach an aggregate capacity of 60 MTPA.
The company presently operates manufacturing operations at units based at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.
JSW Cement through its subsidiary Shiva Cement operates a clinker unit in Odisha.
JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Pvt Ltd, Jefferies India Pvt Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are responsible for managing the company’s IPO process.