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Mumbai
: After finishing a group of meetings with institutional investors at the road show, JSW Cement has finalized the plan to launch it. In the first week of August, the initial public offering of 4,000 crores (IPO) said two people with knowledge of development.
By the end of this month, the company will file an updated red herring prospectus (RHP) with the market regulator by the end of this month, adding people on the condition of anonymity. It filed a draft RHP (DRHP) last August.
“The company’s cement capacity is more than 20 million tonnes, and based on the response from investors and bankers, it is likely to target the surrounding evaluation 18,000–20,000 crores, “said one of the persons cited above.
Domestic and Global Investment Banks such as JM Financial, Axis Capital, Jeffers India, Citigroup Global Markets India, Dam Capital, Goldman Sachs India, Kotak Mahindra Capital Company and SBI Caps have been made mandatory to help the company with IPOs.
According to DRHP filed with market regulator SEBI (Securities and Exchange Board of India) in August, JSW Cement’s IPO will see a combination of new issues and offers for sale or offs. Half of The target of 4,000 crores will be through the issue of fresh stocks. Another 2,000 crore is planned through the ORS component, which is likely to participate in the current investor AP Asia opportunistic holdings, Synergy Metals and SBI.
AP Asia opportunistic holdings PTE. Limited and Synergy Metals Investments Holding Limited are ready to sell shares Each 937.5 crore, while State Bank of India (SBI) plans to divide shares 125 crores.
Email questions for JSW Cement did not respond until the press time.
The company has said that it will use fresh income to fund a new integrated cement unit in Nagaur, Rajasthan, to repay select borrows and also for general corporate purposes.
After starting operations in 2009, JSW Cement is the fastest growing cement company in India. With a capacity of 20 million tons (MT), it is one of the top 10 cement manufacturers in the country in terms of currently established capacity.
Its current facilities are located in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Additionally, it operates a clinker unit in Odisha through its assistant Shiv Cement.
JSW Cement is part of the gentleman Jindal-MP JSW group, with steel, energy, infrastructure, defense to motor vehicles, e-commerce, realty, paint and sports.
JSW stood in consolidated revenue of cement 6,114.59 crore on 31 March 2024 5,982.20 crores in FY23, according to its DRHP data. However, its profit fell after tax 62 crores from 104.03 crore in the same period.
The Indian cement market is globally the second largest and is experiencing significant growth run by the development and urbanization of infrastructure.
According to the Indian brand Equity Foundation or IBEF, FY32 is estimated to reach 5.99 billion tonnes by FY32, performing a CAGR (mixed annual growth rate) of 4.7% during FY24-FY32. Prominent players include UltraTech Cement, Ambuja Cements, ACC and JSW Cement.
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