JSW Cement Aims to Raise ₹4,000 Crore Through IPO, Files Draft Papers with Securities and Exchange Board of India (SEBI)
*JSW Cement Takes Step Towards IPO, Aims to Raise ₹4,000 Crore*
In a significant move, JSW Cement, a leading player in the cement industry, has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth ₹4,000 crore. This strategic move will enable the company to raise funds for expansion and debt repayment, further solidifying its position in the market.
*IPO Breakdown*
The IPO consists of two components:
- Fresh issue of equity shares worth ₹2,000 crore
- Offer for sale (OFS) of ₹2,000 crore by investor shareholders
*Utilization of Proceeds*
The funds raised through the IPO will be allocated as follows:
- ₹800 crore for setting up a new integrated cement unit at Nagaur, Rajasthan
- ₹720 crore for repaying outstanding borrowings
- Remaining amount for general corporate purposes
*Company Overview*
JSW Cement is the sixth largest cement manufacturer in India, with an installed grinding capacity of 20.60 MTPA. The company plans to expand its capacity to 60 MTPA, further strengthening its market presence. It operates manufacturing units across various locations, including Vijayanagar, Nandyal, Salboni, Jajpur, and Dolvi, and has a subsidiary, Shiva Cement, operating a clinker unit in Odisha.
*IPO Management*
The IPO will be managed by a consortium of leading investment banks, including JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs, Jefferies India, Kotak Mahindra Capital Company, and SBI Capital Markets.
This IPO marks a significant milestone for JSW Cement, enabling the company to drive growth, expansion, and innovation in the cement industry.
