JSW Cement IPO: JSW Cement, part of Sajjan Jindal promoted diversified JSW Group, on Friday filed a draft red herring prospectus (DRHP) with the capital markets regulator Sebi to raise Rs 4,000 crore through an initial public offer (IPO).
The initial share sale comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer for sale (OFS) of Rs 2,000 crore by investor shareholders, according to DRHP.
As a part of the OFS, AP Asia Opportunistic Holdings Pte Ltd and Synergy Metals Investments Holding Ltd will offload shares worth Rs 937.5 crore each, and State Bank of India (SBI) will divest shares valued at Rs 125 crore.
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JSW Cement IPO: Objective
The company will utilise proceeds of Rs 800 crore on “part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan” and Rs 720 crore on “prepayment or repayment” of outstanding borrowings availed by it.
The rest would be utilised for general corporate purposes.
However, the total amount utilised for general corporate purposes shall not exceed 25 per cent of the gross proceeds, it added.
As of March 31, 2024, JSW Cement’s total liability was at Rs 8,933.42 crore.
Its financial liabilities include a borrowing of Rs 1,678.90 crore, Rs 1,184.40 crore dues of creditors (other than micro and small enterprises) and other financial liabilities of Rs 842.02 crore.
Its revenue from operations for FY24 stood at Rs 6,028.10 crore. This was Rs 5,836.72 crore in FY 23 and Rs 4,668.57 crore in FY22.
Its profit for the year was Rs 62 crore in FY24 and Rs 104 crore in FY23.
As of March 31, 2024, it has an installed grinding capacity of 20.60 MTPA (million tonnes per annum) and has an ambition “to reach an aggregate capacity of 60 MTPA”.
About JSW Cement
The company presently operates manufacturing operations at units based at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.