JSW Cement files draft papers with Sebi to raise Rs 4,000 crore via IPO

Sajjan Jindal-promoted JSW Cement on Friday filed its offer documents with market regulator Securities and Exchange Board of India (Sebi), for a Rs 4000-crore initial public offering.

The document stated, the company looks to raise Rs 2000 crore through a fresh issue and another Rs 2000 crore through an offer for sale. 

 The group’s energy, ports and steel are already listed businesses, with the ports vertical — JSW Infrastructure — being the latest.

In August last year, Parth Jindal, scion of the JSW group and managing director for JSW Cement, had shared the listing plans for 2024 and said, the proceeds will help the group achieve its 60 million tonne plan.

 

The Friday document noted the proceeds would be utilised to part finance the cost of establishing a cement unit in Rajasthan, payment of certain borrowings and other general corporate purposes. 

JSW Cement plans to triple the cement business capacity to 60 million tonnes per annum (MTPA) in four years from now, from the current 20.60 MTPA.

The company has shared plans to expand to markets in North and Central India. JSW Cement currently has presence in Southeast and West India. In May this year, the company said it plans to invest around Rs 3,000 crore to establish a greenfield, integrated cement manufacturing facility in Nagaur district of Rajasthan.

Private equity (PE) investors with exposure to JSW Cement include Apollo Global Management (through its managed funds) and Synergy Metals Investments Holding.

In July 2021, JSW Cement entered into definitive agreements to raise up to Rs 1,500 crore from these two global PE investors. Both, AP Asia Opportunistic Holdings Pte. and Synergy Metals Investments Holding Limited are listed as selling shareholders, for equity worth Rs 937 crore each in the offer document filed on Friday.

JSW Cement’s IPO will hit the market while its other listed competitors are in a frenzy to increase capacity and gain market share. Cement volumes in FY24 grew by 9 per cent, and are expected to clock 6-8 per cent growth in the current financial year. Higher volumes, however, are against the backdrop of subdued cement prices.