JSW Cement, led by Sajjan Jindal, has filed its initial public offering (IPO) documents with the Securities and Exchange Board of India (SEBI) to raise Rs 4,000 crore. The IPO will consist of a Rs 2,000 crore fresh issue and a Rs 2,000 crore offer for sale (OFS).
The funds from the IPO are planned to be used for partially financing the establishment of a new cement plant in Rajasthan, repaying existing debt, and for general corporate purposes. JSW Cement aims to significantly increase its capacity from the current 20.60 million tonnes per annum (MTPA) to 60 MTPA within the next four years.
The company, which currently operates in Southeast and West India, is targeting expansion into North and Central India. In May, JSW Cement announced a Rs 3,000 crore investment for a new integrated cement manufacturing facility in Nagaur district, Rajasthan.
Private equity investors Apollo Global Management and Synergy Metals Investments Holding have holdings in JSW Cement. Both investors are listed as selling shareholders in the IPO, with equity worth Rs 937 crore each.
The IPO comes as other listed cement companies are also expanding their capacities amid a competitive market. While cement volumes grew by 9% in FY24, the industry faces challenges with subdued pricing. JSW Cement, a prominent player in the Indian cement industry, is part of the JSW Group and is known for its significant contributions to infrastructure and construction projects across the country.
Headquartered in Mumbai, the company operates several state-of-the-art manufacturing facilities and has established a strong presence in Southeast and West India. JSW Cement is focused on expanding its production capacity and market reach, with ambitious plans to increase its output to 60 million tonnes per annum in the coming years. The company’s strategic investments in new plants and technological advancements underscore its commitment to meeting growing demand and driving sustainable growth in the cement sector.
