SEBI Approves JSW Cement's Plan to Raise INR 4,000 Cr Through an IPO
The Securities and Exchange Board of India (SEBI), which oversees capital markets, has given JSW Cement Limited, a division of the global conglomerate JSW Group, its final approval to raise INR 4000 crore through an initial public offering (IPO).
On August 16, the business submitted its IPO documents to the market watchdog. An offer for sale (OFS) of up to INR 2000 crore by Investor Selling Shareholders and a fresh issuance of shares up to INR 2000 crore are both included in the IPO, which has a face value of INR 10 per. AP Asia Opportunistic Holdings Pte. Ltd. is offering up to 937.50 crore, Synergy Metals Investments Holding Limited is offering up to 937.50 crore, and State Bank of India is offering up to 125 crore.
How Firm is Planning to Utilise Funds?
As a pre-IPO placement, the company may investigate the prospect of collecting up to INR 400 crore through a preferential allotment or other means after consulting with the book-running lead managers. The size of the new issue will be changed appropriately if this placement is carried out correctly.
INR 800 crore will be used by the company to partially finance the construction of a new integrated cement facility in Nagaur, Rajasthan; INR 720 crore will be used for the full or partial prepayment or repayment of some outstanding debts; and the remaining sum will be used for general business purposes.
The offer's registrar is KFin Technologies Limited, while the book running lead managers are JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DAM Capital Advisors Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited. It is suggested that the equity shares be listed on the NSE and BSE.
About JSW Cement
According to a CRISIL Report, JSW Cement is among the fastest-growing cement manufacturers in India in terms of installed grinding capacity and sales volume between fiscal 2014 and fiscal 2024. Among the top 10 cement makers by installed capacity, it was also one of the fastest-growing cement production companies in India in terms of sales volume from Fiscal 2023 to Fiscal 2024.
According to the CRISIL Report, the company's sales volume increased by 31.11% in Fiscal 2023 (not including sales from JSW Cement FZC), greatly exceeding the industry average growth of 6.35%.
In contrast to the industry norms of 7.31% and 7.56%, respectively, JSW Cement's installed grinding capacity and sales volume expanded at compound annual growth rates (CAGR) of 14.14% and 19.06% over this time, according to CRISIL.
Nitin Konde
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