JSW Cement Gets SEBI Approval For Rs 4,000 Crore IPO

The Securities and Exchange Board of India on Monday has approved the initial public offering of JSW Cement Ltd. to raise Rs 4,000 crore. The regulator issued its observations on the IPO offers, which means a final clearance, according to a release.

JSW Cement Ltd., part of the multinational conglomerate JSW Group, had filed its IPO papers with SEBI on Aug. 16, 2024.

The IPO with a face value of Rs 10 each, is a mix of fresh issue of shares up to Rs 2000 crore and an offer-for-sale of up to Rs 2,000 crore, according to the draft red herring prospectus.

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

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 Co. Ltd., and SBI Capital Markets Ltd., are the book running lead managers.

While, KFin Technologies Ltd., is the registrar to the offer.

The equity shares are proposed to be listed on BSE and NSE.

The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a preferential offer or any other method aggregating to Rs 400 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

Proceeds worth Rs 800 crore will be used to part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan. While, Rs 720 crore will be used for prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company; and general corporate purposes.

JSW Group has diversified businesses across various sectors such as steel, energy, maritime, infrastructure, defence, business-to-business e-commerce, realty, paints, sports and venture capital.

JSW Cement is the fastest-growing 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% rise in sales volume in Fiscal 2023, excluding sales from JSW Cement FZC, significantly outpacing the industry average growth of 6.35%, according to the CRISIL Report.

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