Sajjan Jindal-promoted JSW Cement on Friday filed its offer documents with market regulator Securities and Exchange Board of India (Sebi), saying the company will raise Rs 4,000 crore from the initial public offering (IPO), according to Bloomberg News.
JSW had earlier stated it would list its cement arm in 2024. The group’s energy, ports and steel are already listed businesses, with the ports vertical — JSW Infrastructure — being the latest.
In August last year, Parth Jindal, scion of the JSW group and managing director for JSW Cement, had shared the listing plans for 2024 and said, the proceeds will help the group achieve its 60 million tonne plan.
JSW Cement plans to triple the cement business capacity to 60 million tonnes per annum (MTPA) in four years from now, from the current 20.60 MTPA.
The company has shared plans to expand to markets in North and Central India. JSW Cement currently has presence in Southeast and West India. In May this year, the company said it plans to invest around Rs 3,000 crore to establish a greenfield, integrated cement manufacturing facility in Nagaur district of Rajasthan.
Private equity (PE) 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. Back then, JSW Cement noted, conversion of this investment to common equity of the company will be linked to the company’s future performance and valuation determined at the time of the IPO.
JSW Cement’s IPO will hit the market while its other listed competitors are in a frenzy to increase capacity and gain market share. Cement volumes in FY24 grew by 9 per cent, and are expected to clock 6-8 per cent growth in the current financial year. Higher volumes, however, are against the backdrop of subdued cement prices.
First Published: Aug 16 2024 | 6:01 PM IST
