SBI picks up minority stake in Sajjan Jindal-led JSW Cement for Rs 100 cr

The capital will support JSW Cement's capacity expansion to 25 million tonne annually.

Sajjan Jindal-led JSW Cement said on Tuesday State Bank of India (SBI) has acquired a minority stake in the cement company by investing Rs 100 crore via compulsorily convertible preference shares (CCPS).

The conversion of such CCPS into common equity of the company will be linked to the JSW Cement’s business performance and valuation at the time of the proposed initial public offering, said JSW in a press release.

"Financing our growth and expansion strategy with investment from a banking partner such as SBI sets us up very well for our planned IPO in the next 12-18 months. We look forward to a long-term association with SBI as we work towards building a New India by offering world-class environment-friendly cement products,” the release quoted Narinder Singh Kahlon, director finance at JSW Cement, as saying.

This capital infusion will support JSW Cement’s capacity expansion from 14 million tonne annually to 25 million tonne.

“We plan to go public in December 2022,” said a senior JSW Cement official on condition of anonymity.

The SBI transaction with JSW Cement comes close on the heels of the Rs 1,500 crore investments made by two global private equity investors, Apollo Global Management Inc. (through its investment entity in Singapore) and Synergy Metals Investments Holding Ltd earlier this year.