JSW Group’s JSW Cement gets Sebi nod for ₹4000 crore IPO; details here

JSW Cement Limited, part of the multinational conglomerate JSW Group, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise ₹4000 crore through an initial public offering (IPO).

The company had filed its IPO papers with the markets regulator on August 16.

The IPO, with a face value of ₹10 each, is a mix of fresh issue of shares up to ₹2000 crore and an offer for sale (OFS) of up to ₹2000 crore by Investor Selling Shareholders.

The offer for sale consists of up to ₹937.50 crore by AP Asia Opportunistic Holdings Pte. Ltd., up to ₹937.50 crore by Synergy Metals Investments Holding Limited, and up to ₹125 crore by State Bank of India.

The company, in consultation with the book-running lead managers, may explore the possibility of raising up to ₹400 crore through a preferential allotment or other methods as a pre-IPO placement. If this placement is successfully executed, the size of the fresh issue will be adjusted accordingly.

The company intends to allocate ₹800 crore to partially fund the establishment of a new integrated cement facility in Nagaur, Rajasthan; ₹720 crore for the prepayment or repayment, either fully or partially, of certain outstanding borrowings; and the remaining amount for general corporate purposes.

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 are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

About the company

JSW Cement is one of the fastest cement manufacturing company in India in terms of increased installed grinding capacity and sales volume from Fiscal 2014 to Fiscal 2024, according to a CRISIL Report. From Fiscal 2023 to Fiscal 2024, It was also one of the fastest growing cement manufacturing company in terms of sales volume within India among the top 10 cement manufacturers by installed capacity.

The company achieved a 31.11 per cent rise in sales volume in Fiscal 2023, excluding sales from JSW Cement FZC, significantly outpacing the industry average growth of 6.35 per cent, according to the CRISIL Report.

During this period, JSW Cement's installed grinding capacity and sales volume grew at compound annual growth rates (CAGR) of 14.14 per cent and 19.06 per cent, respectively, compared to the industry averages of 7.31 per cent and 7.56 per cent, as reported by CRISIL.