JSW Cement Cuts IPO Size To Rs 3,600 Crore

JSW Cement, part of Sajjan Jindal-promoted diversified JSW Group, is set to launch its truncated Rs 3,600-crore initial public offering on August 7.

The total size of the issue, however, is lower than the earlier proposed issue of up to Rs 4,000 crore, according to the latest RHP. The IPO will open for public subscription on August 7 and closes on August 11, while the anchor investor bidding date would be August 6 for JSW Cement, according to the Red Herring Prospectus filed on Friday.

The initial share sale comprises a fresh issue of equity shares worth Rs 1,600 crore and an Offer for Sale of shares worth up to Rs 2,000 crore by investor shareholders. As a part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, will be offloading shares worth Rs 931.80 crore, Synergy Metals Investments Holding Ltd will sell shares worth Rs 938.50 crore, and State Bank of India will divest shares valued at Rs 129.70 crore.

Synergy Metals Investments Holding is an arm of Synergy Metals and Mining Fund, a private equity fund set up by a former executive of steelmaker ArcelorMittal, Sudhir Maheshwari, in 2015.

As per draft papers, the company will utilise proceeds worth Rs 800 crore to part-finance a new integrated cement unit at Nagaur, Rajasthan, and Rs 520 crore on prepayment or repayment of outstanding borrowings availed by it. The rest would be used for general corporate purposes.

The Mumbai-based company had earlier planned to raise Rs 4,000 crore. At the time of filing papers, JSW Cement said it intended to raise Rs 2,000 crore from a fresh issue of equity shares and an offer for sale (OFS) of Rs 2,000 crore by investor shareholders. However, the size of the fresh capital-raising has been cut by Rs 400 crore from the fresh issue, as per the latest RHP.

In August 2024, JSW Cement filed preliminary IPO papers with Sebi, and later in September, the regulator kept the company's proposed initial share-sale on hold. On January 6, this year, the regulator finally gave its observation to float the IPO.

As of March 31, 2025, JSW Cement's total borrowings stood at Rs 6,166.6 crore. On the financial front, the company's revenue from operations for FY25 stood at Rs 5,813.1 crore against Rs 6,028.10 crore in FY24, and Rs 5,836.72 crore in FY23. The company reported a loss of Rs 163.77 crore in FY25. Its profit was Rs 62 crore in FY24 and Rs 104 crore in FY23.

As of March 31, 2025, JSW Cement had an installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA). According to the CRISIL report, JSW Cement is India's largest manufacturer of ground granulated blast furnace slag (GGBS), an eco-friendly product produced entirely from blast furnace slag (a by-product of the steel manufacturing process), with a market share in terms of GGBS sales of 84 per cent in FY25.

The company presently operates manufacturing operations at units based at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.

JSW Cement through its subsidiary Shiva Cement operates a clinker unit in Odisha. 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 are responsible for managing the company's IPO process. The company's shares will be listed on the BSE and NSE.