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One of the India's key player in the Cement sector, JSW Cement Limited, a part of the diversified JSW Group portfolio, on August 16, filed its Red Herring Prospectus (DRHP) with the marget regulator SEBI for an initial public offering (IPO) to raise upto Rs 4,000 crore.
IPO Breakdown
The IPO, with a face value of Rs 10 each, is a mix of fresh issue of shares up to Rs 2,000 crore and an offer for sale (OFS) of up to Rs 2,000 crore by Investor Selling Shareholders.
Here’s a quick breakdown
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1) Fresh Issue: Up to Rs 2,000 crore
2) Offer for Sale (OFS): Up to Rs 2,000 crore, split among:
- Rs 937.50 crore from AP Asia Opportunistic Holdings Pte. Ltd.
- Rs 937.50 crore from Synergy Metals Investments Holding Limited
- Rs 125 crore from State Bank of India
JSW Cement Files For ₹4,000 Cr IPO | Canva
Utilisation of the fund
JSW Cement plans to invest these funds raised from the IPO for several initiatives such as:
- New Cement Unit: Rs 800 crore to establish an integrated cement unit in Nagaur, Rajasthan
- Debt Repayment: Rs 720 crore to repay some of its existing borrowings
- General Corporate Purposes: Remaining funds for various corporate needs
- Growth Trajectory: Rapid Expansion and Innovation
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. | File/ Representative image
According to a CRISIL Report, this cement company of the group is one of the fastest-growing cement manufacturer in country, with a 31.11 per cent rise in sales volume in Fiscal 2023.
The company also in the financial year 2024, held a market share in GGBS sales.
Key Players in the IPO Process
The IPO is being managed by a team of prominent book-running lead managers, including JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, and others. KFin Technologies Limited will serve as the registrar to the offer.
