JSW Cement, part of Sajjan Jindal-led JSW Group, has received the nod of capital market regulator SEBI to raise ₹4,000 crore through initial public offering. The company had filed its IPO papers with SEBI in August, 2024.

Last September, SEBI had put JSW Cement application for IPO in abeyance without specifying reasons. However, the application was cleared on Monday.

The IPO, with a face value of ₹10 each, will be a mix of fresh issue of shares worth ₹2,000 crore and an offer for sale of ₹2,000 crore by existing investors.

The offer for sale consists of ₹937 crore by AP Asia Opportunistic Holdings, ₹937 crore by Synergy Metals Investments Holding, and ₹125 crore by State Bank of India.

Pre-IPO placement 

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 for ₹400 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

The company plans to deploy ₹800 crore to finance the cost of establishing a new integrated cement unit at Nagaur, Rajasthan, and ₹720 crore to prepay outstanding borrowings and general corporate purposes.

JSW Cement, which has a manufacturing capacity of 19 MT annually, aims to achieve the capacity of 60 MTPA. Currently, it has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha, and Dolvi in Maharashtra.

Sales volume 

The company achieved a 31 per cent rise in sales volume in FY23, excluding sales from JSW Cement FZC, significantly outpacing the industry average growth of 6 per cent, according to the CRISIL Report.

During this period, JSW Cement’s installed grinding capacity and sales volume grew at compound annual growth rate of 14 per cent and 19 per cent, respectively, compared to the industry averages of 7 per cent and 8 per cent.

JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital and SBI Capital Markets are the book running lead managers and KFin Technologies is the registrar to the offer. The equity shares will listed on BSE and NSE.