JSW Cement plans to launch its Rs 4,000-crore initial public offering (IPO) in January 2025, according to JSW Group chairman Sajjan Jindal. The Securities and Exchange Board of India (SEBI) had previously paused the IPO in September 2023.
The IPO will consist of two parts: a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore by existing shareholders. Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd will each sell shares worth Rs 937.5 crore, while the State Bank of India (SBI) will divest shares valued at Rs 125 crore.
The company intends to use Rs 800 crore of the proceeds from the fresh issue to help finance the establishment of a new integrated cement plant in Nagaur, Rajasthan. An additional Rs 720 crore will be allocated for debt repayment, with the remaining funds earmarked for general corporate purposes.
JSW Cement, which currently has a manufacturing capacity of 19 million tons per annum (MTPA), aims to increase this to 60 MTPA. Its existing manufacturing units are located in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Additionally, through its subsidiary Shiva Cement, the company operates a clinker unit in Odisha.
JSW Group has a diverse business portfolio spanning sectors such as steel, energy, maritime infrastructure, defense, B2B e-commerce, real estate, paints, sports, and venture capital. The group’s last IPO was that of JSW Infra.