JSW Cement, part of the infrastructure-to-metals conglomerate led by Sajjan Jindal, is on the verge of receiving approval from the Securities and Exchange Board of India (Sebi) for its ₹4,000-crore initial public offering (IPO). The company had submitted its draft red herring prospectus (DRHP) on 17th August, 2024, and industry sources indicate that Sebi’s approval could be granted shortly.
The IPO will consist of two parts: a fresh issue of equity shares worth ₹ 2,000 crore and an offer-for-sale (OFS) of ₹2,000 crore by existing shareholders, including investors like Apollo Global Management, Synergy Metals Investment Holding, and SBI. The proposed share sale is set to be the cement sector’s first major public offering since Nuvoco Vistas’ ₹ 5,000 crore IPO in 2021. JSW Cement’s public debut would be a significant event for the group, as it follows the successful listing of JSW Infrastructure in October 2023. The IPO plans come amid intense mergers and acquisitions activity in the Indian cement sector, with market leader UltraTech Cement and the ACC-Ambuja combine of the Adani group engaged in a fierce M&A battle. The company plans to use a portion of the funds raised through the fresh issue to expand its production capacity and repay debt. JSW Cement’s expansion plans include establishing a new integrated cement unit in Rajasthan and increasing its clinker and grinding capacities.
Expansion and Growth Plans As of March 2024, JSW Cement operates seven plants in India with a grinding capacity of 20.60 million metric tonnes per annum (MMTPA) and clinker capacity of 6.44 MMTPA. The company aims to expand its grinding capacity to 40.85 MMTPA and clinker capacity to 13.04 MMTPA, with plans to reach a total capacity of 60 MMTPA in the near future. The IPO is being managed by a consortium of investment banks, including JM Financial, Kotak Mahindra Capital, and Axis Capital. The legal counsel for the offer is Khaitan and Co.