JSW Cement to Launch ₹4,000-Crore IPO in January 2025

JSW Cement, part of the diversified JSW Group, is planning to launch its Initial Public Offering (IPO) in January 2025, with a target raise of ₹4,000 crore. This was confirmed by Sajjan Jindal, the Chairman of JSW Group.

SEBI Investigation and IPO Delay

The Securities and Exchange Board of India (SEBI) had previously put the IPO on hold in September 2024. The regulator is investigating a potential regulatory violation related to the inter-se transfer of investments held by Hexa Securities and Finance Co., a company where several members of the Jindal family, including Sajjan Jindal, hold director positions.

Structure of the IPO

The IPO is structured to include both a fresh issue of equity shares and an offer-for-sale (OFS). The fresh issue will raise ₹2,000 crore, while the OFS will also amount to ₹2,000 crore. According to the draft red herring prospectus (DRHP) filed with SEBI, key investor shareholders, including AP Asia Opportunistic Holdings Pte. Ltd, Synergy Metals Investments Holding Ltd, and the State Bank of India (SBI) will sell their shares under the OFS.

Breakdown of the Offer-for-Sale (OFS)

• AP Asia Opportunistic Holdings Pte. Ltd: ₹937.5 crore
• Synergy Metals Investments Holding Ltd: ₹937.5 crore
• State Bank of India (SBI): ₹125 crore

Use of IPO Proceeds

JSW Cement plans to utilise the funds raised through the fresh issue for several key initiatives:

• ₹800 crore will be allocated for the establishment of a new integrated cement unit in Nagaur, Rajasthan.
• ₹720 crore will be used for debt repayment.

The remaining funds will be directed towards general corporate purposes.

Expansion Plans and Manufacturing Capacity

JSW Cement currently has an annual manufacturing capacity of 19 million tons (MT). With its IPO, the company aims to significantly increase this capacity to 60 million tons per annum (MTPA). JSW Cement is one of several businesses under the JSW Group, which operates in a range of sectors including steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports, and venture capital.

Previous IPO from JSW Group

The last IPO launched by the JSW Group was by JSW Infra. This upcoming IPO from JSW Cement marks another significant step in the group’s growth strategy. JSW Cement operates manufacturing units across India, including Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha, Dolvi in Maharashtra. Additionally, through its subsidiary Shiva Cement, the company operates a clinker unit in Odisha. 

About JSW Group

JSW Group has business interests in sectors such as steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports and venture capital.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.