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JSW Cement Secures Sebi Nod for ?4,000 Cr IPO

Green cement leader to fund expansion and debt repayment

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JSW Cement, a part of the Sajjan Jindal-led JSW Group, has received approval from the Securities and Exchange Board of India (Sebi) for its ?40 billion initial public offering (IPO). The company had submitted its draft red herring prospectus (DRHP) on August 17.

The IPO will comprise a fresh equity issue of Rs 20 billion and an offer-for-sale (OFS) of Rs 20 billion from existing shareholders, including Apollo Global Management, Synergy Metals Investment Holding, and SBI.

Industry Milestone
This marks the first significant cement sector IPO since Nuvoco Vistas’ Rs 50 billion offering in 2021. It also follows the JSW Group’s IPO for JSW Infrastructure in October 2023, breaking a 13-year gap for the conglomerate in Dalal Street listings.

Expansion and Utilization Plans
Proceeds from the IPO will fund key projects, including Rs 8 billion for a new integrated cement unit in Nagaur, Rajasthan, ?7.2 billion for debt repayment, and the remainder for general corporate purposes. JSW Cement, known for its focus on green cement, aims to double its installed grinding capacity to 40.85 MMTPA and clinker capacity to 13.04 MMTPA in the coming years, with a long-term target of 60 MMTPA.

Market Context
The approval comes amid fierce competition in the cement sector, with M&A battles between UltraTech Cement and the ACC-Ambuja combine. The sector’s dynamics make JSW Cement’s listing a notable development.

Investment banks, including JM Financial, Kotak Mahindra Capital, and Goldman Sachs, are managing the IPO. Khaitan and Co is the legal advisor.

Concrete

Star Cement launches ‘Star Smart Building Solutions’

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Star Cement has launched ‘Star Smart Building Solutions,’ a new initiative aimed at promoting sustainable construction practices, as per a recent news report. This venture introduces a range of eco-friendly products, including tile adhesives, tile cleaners and grouts, designed to enhance durability and reduce environmental impact. The company plans to expand this portfolio with additional value-added products in the near future. By focusing on sustainable materials and innovative building solutions, Star Cement aims to contribute to environmentally responsible construction and meet the evolving needs of modern infrastructure development.

Image source:https://www.starcement.co.in/

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Concrete

Nuvoco Vistas reports record quarterly EBITDA

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

Image source:nuvoco.com

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.

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