SEBI Clears JSW Cement's INR 4,000 Crore IPO As per the Draft Red Herring Prospectus (DRHP), JSW Cement plans to allocate INR 800 crore from the fresh issue proceeds to partially finance a new integrated cement facility in Nagaur, Rajasthan.
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JSW Cement, a part of the Sajjan Jindal-led JSW Group, has received final approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) to raise INR 4,000 crore. The approval, known as "final observation" in SEBI's terms, allows the cement giant to proceed with its public listing. The IPO comprises a fresh issuance of shares worth INR 2,000 crore and an offer for sale (OFS) of another INR 2,000 crore. The OFS includes INR 937.50 crore each from AP Asia Opportunistic Holdings Pte. Ltd. and Synergy Metals Investments Holding Limited, along with INR 125 crore from the State Bank of India.
As per the Draft Red Herring Prospectus (DRHP), JSW Cement plans to allocate INR 800 crore from the fresh issue proceeds to partially finance a new integrated cement facility in Nagaur, Rajasthan. Another INR 720 crore will be directed towards clearing outstanding debts, while the remaining funds will cover general corporate expenses.
Additionally, the company may explore raising INR 400 crore through a pre-IPO placement. If this option is exercised, the size of the fresh issue will be adjusted accordingly.
JSW Cement's IPO is a pivotal step in the company's growth trajectory, as it looks to bolster its production capacity and strengthen its position in India's competitive cement industry. The company had initially filed its IPO papers with SEBI in August 2023, with a subsequent filing in September. After a brief hold, SEBI granted its go-ahead last week, clearing the path for the much-anticipated share sale.
Listing and key players
The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Leading financial institutions, including JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, and others, have been appointed as book-running lead managers for the IPO. KFin Technologies Limited will act as the registrar to the offer.
This IPO marks a significant move for JSW Cement as it aims to leverage the capital markets to fund its ambitious expansion plans and reduce debt. With SEBI's green light, all eyes are now on the IPO launch, which is expected to attract substantial interest from investors.
