JSW Cement IPO
By Sajjan Jindal Promoted JSW Cement, a company of business conglomerate JSW Group, has received SEBI approval to raise Rs 4,000 crore through initial public offering (IPO). Securities and Exchange Board of India (SEBI) gave this information on Monday. The regulator has approved the issue after considering the draft document filed by JSW Cement. The IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale (OFS) worth Rs 2,000 crore by investor shareholders.
The company had applied for IPO in August
In August last year, the draft document was filed with SEBI for IPO approval. However, in September the regulator had refused to approve this IPO. But on January 6, 2025, SEBI gave it the green signal. The cement company will use the funds raised from the IPO for setting up a new unit in Nagaur and for general needs besides repayment of outstanding loans. JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DAM Capital Advisors Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited are the book running lead managers and Kfin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
about the company
According to CRISIL report, JSW Cement is one of the fastest growing cement company in India in terms of installed grinding capacity and sales volume added from FY2014 to FY2024. According to the CRISIL report, the company achieved 31.11 per cent growth in sales volume in FY23, excluding the sale of JSW Cement FZC, which is significantly higher than the industry average growth of 6.35 per cent. During the period, JSW Cement’s capacity and sales volumes grew at a compound annual growth rate (CAGR) of 14.14 per cent and 19.06 per cent, respectively, compared to the industry average growth rate of 7.31 per cent and 7.56 per cent, as reported by CRISIL. The company currently manufactures cement at units located at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.
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