JSW Cement to Raise Rs 4,000 Cr via IPO, Files with SEBI

JSW Cement has submitted preliminary documents to the Securities and Exchange Board of India (Sebi) to raise Rs 4,000 crore through an initial public offering (IPO). The IPO includes a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale (OFS) of Rs 2,000 crore by existing shareholders, as per the draft red herring prospectus (DRHP).

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Details of the Offer for Sale

In the OFS, AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd will each sell shares worth Rs 937.5 crore. Additionally, State Bank of India (SBI) will divest shares valued at Rs 125 crore. The funds from the fresh issue will be utilised for various purposes.

Utilisation of Fresh Issue Proceeds

JSW Cement plans to use Rs 800 crore from the fresh issue to partially finance a new integrated cement unit in Nagaur, Rajasthan. Another Rs 720 crore will be allocated for debt repayment, while the remaining funds will be used for general corporate purposes.

Company Background and Expansion Plans

JSW Cement is part of the JSW Group, which operates in sectors such as steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports and venture capital. The company currently has a manufacturing capacity of 19 million tonnes annually and aims to increase this to 60 million tonnes per annum (MTPA).

Current Manufacturing Units

The company operates manufacturing units in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Through its subsidiary Shiva Cement, JSW Cement also runs a clinker unit in Odisha.

IPO Management

The IPO process is being managed by JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs India Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd.

JSW Cement's move to raise funds through an IPO marks a significant step in its expansion plans. The proceeds will help the company enhance its production capacity and reduce debt.