JSW Cement Raises Rs 1,080 Crore From Anchor Investors Prior To IPO Launch
Nine domestic mutual funds have applied through 20 schemes to acquire stake in JSW Cement.
JSW Cement Ltd. raised Rs 1,080 crore from anchor investors on Wednesday ahead of its initial public offering. The company allotted 7.35 crore shares at Rs 147 apiece to 52 anchor investors.
Black Rock Emerging Frontiers Master Fund Ltd. and SBI Multicap fund got the highest allocation of 10.19%. SBI Flexicap Fund got the second highest allotment of 9.26% and Nomura Funds Ireland Public Ltd.- Nomura Funds Ireland -India Equity Fund and SBI Life Insurance Co. got 4.63% stake in the company.
Nine domestic mutual funds have applied through 20 schemes, the cement maker said in an exchange filing on Wednesday. They have collectively netted 44.45% of the anchor portion. SBI Banking and Financial Services, Nippon Life India and Motilal Oswal were the major fund houses in this category.
JM Financial Ltd., Axis Capital Ltd., Citigroup Global markets India Pvt., DAM Capital Advisors Ltd., Goldman Sachs (India) Securities Pvt., Jefferies India Pvt., Kotak Mahindra Capital Company Ltd. and SBI Capital Markets Ltd. are the book-running lead managers to the issue.
The company will launch its initial public offering on Thursday to raise up to Rs 3,600 crore. It has set a price band of Rs 139-147 per share for its three-day IPO. JSW Cement aims to raise up to Rs 1,600 crore via a fresh issue, while existing shareholders, including State Bank of India, will sell shares via an offer for sale aggregating up to Rs 2,000 crore. The minimum application lot size is 102 shares.
The offer, which concludes on Monday, is set to list on the BSE and the National Stock Exchange.
JSW Cement will utilise Rs 800 crore from the fresh issue to partly finance a new integrated cement unit at Nagaur, Rajasthan, and Rs 520 crore for repayment of debt.
As part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, will be offloading shares worth Rs 932 crore, Synergy Metals Investments Holding Ltd will sell shares worth Rs 938 crore, and State Bank of India will divest shares valued at Rs 130 crore.
Synergy Metals Investments Holding is an arm of Synergy Metals and Mining Fund, a private equity fund set up in 2015 by Sudhir Maheshwari, a former executive of steelmaker ArcelorMittal.
The proceeds from the OFS will go to the selling shareholders and not to JSW Cement.
