URL copied to clipboard

Trending News

JSW Cement Gears Up for ₹4,000 Crore IPO, Draft Papers Submitted to SEBI

JSW Cement plans to raise ₹4,000 crore through an IPO to fund expansion, debt repayment, and general purposes while aiming to increase its grinding capacity from 20.60 to 60 MTPA.
JSW Cement Gears Up for ₹4,000 Crore IPO, Draft Papers Submitted to SEBI

JSW Cement, a subsidiary of JSW Group, plans to raise ₹4,000 crore through an initial public offering (IPO). The company filed its draft red herring prospectus (DRHP) with SEBI on August 16. The IPO will include a fresh issue of equity shares and an offer-for-sale (OFS), both raising ₹2,000 crore each.

In the OFS, existing investor State Bank of India (SBI) will sell shares worth ₹125 crores. AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd will each sell shares worth ₹937.5 crore. The IPO process will be managed by several financial institutions, including JM Financial, Axis Capital, and Kotak Mahindra Capital.

JSW Cement plans to use ₹800 crore from the IPO proceeds for building a new cement unit in Nagaur, Rajasthan. Another ₹720 crore will go towards repaying or prepaying its outstanding loans. The remaining funds will be allocated for general corporate purposes, but this amount will not exceed 25% of the total proceeds. 

Financially, JSW Cement reported a total liability of ₹8,933.42 crore as of March 31, 2024. Its revenue for FY24 was ₹6,028.10 crore, up from ₹5,836.72 crore in FY23. However, the company’s profit decreased to ₹62 crore in FY24 from ₹104 crore in FY23.

JSW Cement is India’s sixth-largest cement company and operates manufacturing units in several states. The company aims to expand its grinding capacity to 60 million tonnes per annum (MTPA) from its current 20.60 MTPA.

Loading
FREE Trading & Demat Account
Read More News