SEBI Puts JSW Cemnt’s ₹4,000 IPO on Hold

The Securities and Exchange Board of India (SEBI) has temporarily halted the proposed ₹4,000 crore initial public offering (IPO) of JSW Cement. While no specific reasons were provided for the decision, the regulator stated that the “issuance of observations (has been) kept in abeyance.”

JSW Cement, a subsidiary of the JSW Group, submitted its preliminary IPO documents to SEBI on August 16. The IPO was planned to consist of a fresh issue of shares worth ₹2,000 crore and an offer-for-sale (OFS) of existing shares valued at ₹2,000 crore by existing shareholders.

Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd were expected to sell shares worth ₹937.5 crore each, while the State Bank of India (SBI) planned to divest shares valued at ₹125 crore.

The proceeds from the fresh issue were earmarked for various purposes, including the partial funding of a new integrated cement unit in Nagaur, Rajasthan, debt reduction, and general corporate purposes.

JSW Cement, with a current annual production capacity of 19 million tonnes, has ambitious expansion plans to reach 60 million tonnes per annum. Its existing facilities are spread across multiple locations, including Karnataka, Andhra Pradesh, West Bengal, Odisha, and Maharashtra. Additionally, its subsidiary, Shiva Cement, operates a clinker unit in Odisha.

A consortium of investment banks, including JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd, were managing the IPO process.

The delay in SEBI’s approval for JSW Cement’s IPO could impact the company’s fundraising plans and potentially alter its timeline for expansion.

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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.