• Source:JND
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JSW Cement, part of the diversified JSW Group promoted by Sajjan Jindal, has secured Sebi's nod to raise Rs 4,000 crore through an initial public offering (IPO) in August last year. The update with the markets regulatory authority was revealed on Monday. As per the draft red herring prospectus (DRHP) submitted, the initial public offering will include fresh issue of Rs 2,000 crore and an offer for sale (OFS) worth Rs 2,000 crore by investor shareholders.

As part of the OFS, AP Asia Opportunistic Holdings Pvt Ltd and Synergy Metals Investments Holding Ltd will issue shares worth Rs 937.5 crore each, and State Bank of India will invest Rs 125 crore. In August 2023, JSW Cement filed initial IPO documents with SEBI, and then in September, the regulator put the company's proposed initial public offering on hold.

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On January 6, the regulator finally issued its opinion on January 6. In SEBI's words, its opinion indicates that the company is moving forward with its public issues.

According to the draft documents, the company will use Rs 800 crore to partially fund the cost of setting up a new integrated cement unit in Nagpur, Rajasthan, and Rs 720 crore to prepay or repay outstanding loans it has taken. The remaining will be used for general corporate purposes.

As of March 31, 2024, JSW Cement's total debt was Rs 8,933.42 crore.

Financially, the company's revenue from operations in fiscal 2024 was Rs 6,028.10 crore. It had posted a profit of Rs 5,836.72 crore in FY23 and Rs 4,668.57 crore in FY22. It had posted a profit of Rs 62 crore in FY24 and Rs 104 crore in FY202.

By March 31, 2024, it has an installed grinding capacity of 20.60 MTPA (million tonnes per annum) and has a target of achieving an overall capacity of 60 MTPA.

Currently, the company has manufacturing operations at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Tolvi in Maharashtra.

JSW Cement operates a clinker unit in Odisha through its subsidiary Shiva Cement.

JM Financial Limited, Citigroup Global Markets India Private Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, DAM Capital Advisors Limited, Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, and SBI Capital Markets Limited... IPO Company Process.

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(With Inputs From PTI)

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