JSW Cement Secures SEBI Approval for ₹4,000 Crore IPO Plans

JSW Cement has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its ₹4,000-crore Initial Public Offering (IPO). 

Details of the IPO and SEBI Approval

SEBI issued an observation letter on JSW Cement’s draft papers on January 6, 2025, as per the regulator’s latest processing status. This comes after SEBI had put the issuance of observations in abeyance since September 2024, owing to a regulatory examination involving inter-se transfer of investments by Hexa Securities and Finance Co., linked to the Jindal family.

The IPO will comprise a fresh issue of equity shares worth ₹2,000 crore and an offer-for-sale (OFS) of ₹2,000 crore by investors. AP Asia Opportunistic Holdings and Synergy Metals Investments Holding will sell shares worth ₹937.5 crore each, while State Bank of India will offload shares worth ₹125 crore.

Utilisation of Funds

JSW Cement plans to allocate ₹800 crore from the IPO proceeds towards financing a new integrated cement unit in Nagaur, Rajasthan, and ₹720 crore for debt repayment. The Nagaur project, with a total estimated cost of ₹2,697.3 crore, has already seen ₹287.8 crore invested by June 2024. The remaining cost will be met through the IPO proceeds and project loans.

The company had a total debt of ₹5,835.8 crore as of fiscal 2024. The IPO will be managed by merchant bankers, including JM Financial, Axis Capital, Citigroup Global Markets India, and others.

Conclusion

JSW Cement’s ₹4,000-crore IPO marks a significant milestone for the company, with plans to utilise funds for expansion and debt reduction.

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