JSW Cement Submits IPO Documents, Soon Expected to Launch Its First IPO

JSW Cement Submits IPO Document: JSW Cement is soon set to launch its IPO and plans to raise Rs 4,000 crore from public subscription.

JSW Cement which is owned by the Sajjan Jindal-led JSW Group has filed IPO documents to SEBI who is in charge of capital markets.

JSW Cement IPO will consist of a fresh issue of equality shares worth Rs 2,000 crore and the shareholder will issue an offer-for-sale (OFS) worth Rs 2,000 crore.

Besides Nuvoco Vistas Corporation issued Rs 5000 crore in August 2021, JSW Cement IPO will be the next important public issue in the cement sector.

Investors such as AP Asia Opportunistic Holdings Pte, and Synergy Metals Investments Holding will each offer OFS shares worth Rs 937.5 crore. The State Bank of India will also offer shares worth Rs 125 crore.

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However, these investors’ weighted average cost of purchase was Rs 65.19 per share.

The company promoters held 78% of the shares while 19.43% were owned by the public shareholders and the rest 2.57% are owned by the Employee Trusts.

Investors such as AP Asia Opportunistic Holdings Pte, State Bank of India, and Synergy Metals Investments Holding own 16 crore CCPS (compulsory convertible preference shares). These 16 crore CCPS will be transferred to 24.54 crore equity shares prior to the filing of the Red Herring Prospectus with the Registrar of Companies (ROC).

After this, AP Asia Opportunistic Holdings Pte and Synergy Metals Investments Holding will own 9.1% of the shares each and the State Bank of India will hold 1.21% stack in the company.

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As of March 2024, JSW Cement had a set-up grinding capacity of 20.60 MMTPA and an installed clinker capacity of 6.44 MMTPA.

However, the company expects to raise Rs 400 crore through a preferential offer before filing the Red Herring Prospectus with the Registrar of Companies (ROC).

Among the funds raised from the IPO, Rs 800 crore will be used to build a new integrated cement plant in Nagaur, and Rajasthan. The company also plans to use Rs 720 crore from the IPO earnings to pay off all the debts.

The rest of the funds will be utilized for day-to-day business expenses. As of March 2024, the company has a debt of Rs 5,835.76 crore.

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About the JSW Cement

JSW Cement was founded by the Sajjan Jindal-led JSW Group in 2009 and was based especially in the southern part of India but now operating business across India and has seven factories in India.

The company expects to boost its installed grinding capacity from 20.60 MMTPA to 40.85 MMTPA and its installed clinker capacity from 6.44 MMTPA to 13.04 MMTPA.

Furthermore, the company also expects to raise the total capacity to 60.00 MMTPA.

In FY24, the company made a restated profit of Rs 62 crore which is lower than Rs 104 crore in the previous fiscal year.

The company income also dropped from Rs 145.5 crore to Rs 86.5 crore during FY24.

JSW Cement reported that its revenue from operations went up by 3.3% year-on-year to Rs 6,028.1 crore in March 2024. EBITDA of the company rose by 36.9% to Rs 932.9 crore and the margin grew by 15.5% against the previous year.

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