Sajjan Jindal's JSW Cement begins talks with i-bankers for Rs 6k cr listing

The Sajjan Jindal-led JSW group is likely to list its cement business after the general elections

Sajjan Jindal’s JSW group has started discussions with eight investment banks (i-banks) to launch an initial public offering (IPO) of its cement business, said people in the know.

The group’s management had earlier indicated 2024 as the year to list the vertical. “The process is at a very advanced stage,” said the source.

A second source said JSW Cement is in final discussions with JM Financial, Kotak Mahindra Capital, SBI Capital, DAM Capital, Axis, Citi, Goldman Sachs, and Jefferies, among others, for the IPO.

People in the know also added that the group plans to raise up to Rs 6,000 crore from the IPO.

The IPO, they added, is likely to be listed after the general elections expected in May.

An email query sent to the group on Wednesday remained unanswered. A spokesperson declined to comment.

In August last year, Parth Jindal, scion of the JSW group, had shared the listing plans for 2024. 

“We are planning on listing this business in the calendar year 2024 and then, use the proceeds to achieve this 60 million tonne plan or beyond,” Jindal, managing director for JSW Cement had said in an interview with Business Standard in August.

Jindal also shared plans to triple the cement business capacity to 60 million tonnes per annum (MTPA) in five years, from the current 19 MTPA. 

JSW Cement, in an earlier response to Business Standard, said, the expansion plan will see the company expand to markets in North and Central India. This is beyond its presence in South East and West India.

If successful, this would be the fourth IPO from the group, after its ports business JSW Infrastructure, which listed last year. In 2023, the group returned to the market with an IPO after 13 years. 

Private equity 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.

Then, JSW Cement had noted, “The transaction is a structured PE deal wherein compulsorily convertible preference shares (CCPS) are being issued to investors. And, the conversion of such CCPS into common equity of the company will be linked to the company’s future performance and valuation determined at the time of the IPO.”