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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.

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