JSW Cement IPO: JSW Cement has finally received approval from capital markets regulator SEBI for its Rs 4,000 crore IPO. SEBI issued observation letter on JSW Cement’s draft papers on January 6. SEBI had put the issuance of observations on the draft papers of JSW Cement on hold from September 2024. SEBI’s observation letter means approval for IPO. In November 2024, JSW Group Chairman Sajjan Jindal had told CNBC-TV18 that JSW Cement aims to launch a Rs 4,000 crore IPO in January 2025.
The IPO will include new equity shares worth Rs 2,000 crore as well as an offer for sale from investors up to Rs 2,000 crore. Investors AP Asia Opportunistic Holdings and Synergy Metals Investments Holding will sell shares worth Rs 937.5 crore in this OFS. State Bank of India will sell shares worth Rs 125 crore.
How will the IPO money be used?
JSW Cement intends to use Rs 800 crore of the proceeds from the issuance of fresh shares in the IPO to partly finance the cost of setting up a new integrated cement unit in Nagaur, Rajasthan. Apart from this, the loan will be repaid with the help of Rs 720 crore. The remaining money will be used for general corporate purposes.
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The company has already invested Rs 287.8 crore in its Nagaur Cement unit by June 2024. The total estimated cost is Rs 2,697.3 crore. The remaining amount of the estimated cost will be financed by Rs 2,409.4 crore from IPO proceeds (Rs 800 crore) and project loan (Rs 1,609.4 crore).
How much loan on JSW Cement
By the end of FY2024, the total debt of JSW Cement stood at Rs 8,933.42 crore. The merchant bankers handling the JSW Cement IPO will be JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company and SBI Capital Markets.