JSW Cement, part of the Sajjan Jindal led JSW Group, has got SEBI approval to launch its ₹4,000 cr IPO. The DRHP was filed on 17th August and this is a big fund raise.

The IPO will have two components: a fresh issue of ₹2,000 cr and an offer for sale (OFS) of ₹2,000 cr from existing shareholders. Key OFS participants are Apollo Global Management, Synergy Metals Investment Holding and State Bank of India (SBI).

A First in Cement Space

This is a big event in the cement space as this is the first major IPO after Nuvoco Vistas raised ₹5,000 cr in 2021. Also this is a return to Dalal Street for the JSW Group after the IPO of JSW Infrastructure in October 2023 which was a 13 year gap in public listing for the group.

JSW Cement will use the IPO proceeds for growth initiatives. ₹800 cr will be used to set up a new integrated cement plant in Nagaur, Rajasthan. ₹720 cr will be used for debt reduction and the balance for general corporate purposes. These will be in line with the company’s vision to increase green cement portfolio and scale up operations.

JSW Cement has a current grinding capacity of 20.85 MMTPA and clinker capacity of 13.04 MMTPA. The company plans to double the grinding capacity to 40.85 MMTPA in the near term and 60 MMTPA in the long term.

The IPO comes at a time when the cement space is highly competitive with UltraTech Cement and ACC-Ambuja combine being the major players. So the JSW Cement IPO will attract a lot of attention from the investors.

JM Financial, Kotak Mahindra Capital and Goldman Sachs are the book running lead managers. Khaitan and Co is the legal advisor.