JSW Cement to raise ₹4,000 through IPO, files draft documents with Sebi, Rajasthan cement unit to be set up

JSW Cement has filed its draft prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) for a ₹4,000 crore initial public offering (IPO) on Friday, August 16, 2024.

The problem consists in a ₹2,000 crore sale of fresh shares and a ₹2,000 crore Offer for Sale (OFS).

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The funds are to be used for setting up a cement unit in Nagaur district of Rajasthan, repayment of certain loans and other general purposes.

The company said it would invest ₹3,000 crore for the Rajasthan unit and added that it has intentions to expand into North and Central India markets as its current presence is predominantly in South East and West India.

The conglomerate’s energy, ports and steel businesses are already listed. JSW Infrastructure is the latest before JSW Cement.

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Parth Jindal, JSW Cement MD and scion JSW Group said of the plan to list in August 2023, adding that the proceeds will be used to achieve the group’s 60 million tonnes per annum (MTPA) plan. It is currently producing 20.60 MTPA.

JSW Cement entered into agreements with private equity (PE) investors such as Apollo Global Management and Synergy Metals Investments Holding in July 2021 to raise ₹1,500 crores.

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