JSW Group Firm Gets SEBI Nod for INR 4,000 Crore IPO

JSW Cement, part of the diversified JSW Group led by Sajjan Jindal, has received approval from the Securities and Exchange Board of India (SEBI)

JSW Group Firm Gets SEBI Nod for INR 4,000 Crore IPO
JSW Group Firm Gets SEBI Nod for INR 4,000 Crore IPO

JSW Cement, part of the diversified JSW Group led by Sajjan Jindal, has received approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The company aims to raise INR 4,000 crore through the public issue, as per updates shared with the markets regulator on Monday, according to a report by PTI.

The IPO will consist of a fresh issue of equity shares worth INR 2,000 crore, along with an Offer-for-Sale (OFS) of INR 2,000 crore by existing investor shareholders. According to the Draft Red Herring Prospectus (DRHP) filed in August last year, shares worth INR 937.5 crore each will be offloaded by AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd, while State Bank of India (SBI) will divest shares valued at INR 125 crore.

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SEBI Filing and Approval

JSW Cement initially filed its IPO papers with SEBI in August 2023. The regulator had previously put the proposed public issue on hold in September. However, on January 6, SEBI provided its observation—meaning the official go-ahead—for the company to proceed with its public offering.

Utilization of IPO Proceeds

The funds raised from the IPO will be used for several key purposes. Approximately INR 800 crore will be allocated towards part-financing the establishment of a new integrated cement unit in Nagaur, Rajasthan. Another INR 720 crore will be used to prepay or repay outstanding borrowings. The remaining funds will be directed towards general corporate purposes. As of March 31, 2024, JSW Cement's total liabilities stood at INR 8,933.42 crore.

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Financial Performance

In the financial year FY24, JSW Cement reported revenues from operations of INR 6,028.10 crore, an increase from INR 5,836.72 crore in FY23, and INR 4,668.57 crore in FY22. The company recorded a profit of INR 62 crore in FY24, compared to INR 104 crore in FY23.

Manufacturing Capacity and Operations

As of March 31, 2024, JSW Cement has an installed grinding capacity of 20.60 MTPA (million tonnes per annum), with plans to expand its aggregate capacity to 60 MTPA. The company operates manufacturing units in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Additionally, through its subsidiary Shiva Cement, JSW Cement also manages a clinker unit in Odisha.

Book Running Lead Managers

The IPO will be managed by a team of financial institutions, including JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Pvt Ltd, Jefferies India Pvt Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.

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