Sajjan Jindal-promoted JSW Cement on Friday filed its offer documents with the market regulator, according to Bloomberg News, adding that the company will raise Rs 4,000 crore from the offering.
JSW Cement had earlier stated 2024 as the year to list its cement arm. The group’s energy, ports, and steel businesses are already listed, with the ports vertical—JSW Infrastructure—being the latest.
In August last year, Parth Jindal, scion of the JSW Group and managing director of JSW Cement, shared the listing plans for 2024 and said the proceeds would help the group achieve its 60 million tonne plan.
JSW Cement plans to triple its cement business capacity to 60 million tonnes per annum (MTPA) in four years from now, up from the current 20.60 MTPA.
The company has shared plans to expand to markets in North and Central India. JSW Cement currently has a presence in South, East, and West India. In May, the company said it plans to invest around Rs 3,000 crore to establish a greenfield, integrated cement manufacturing facility in Nagaur district of Rajasthan.
Private equity investors with exposure to JSW Cement include Apollo Global Management (through its managed funds) and Synergy Metals Investments Holding.
In July 2021, JSW Cement entered into definitive agreements to raise up to Rs 1,500 crore from these two global PE investors. Back then, JSW Cement noted that the conversion of this investment to common equity of the company would be linked to the company’s future performance and valuation determined at the time of the IPO.
JSW Cement’s IPO will hit the market while its other listed competitors are in a frenzy to increase capacity and gain market share. Cement volumes in FY24 grew by 9 per cent and are expected to clock 6-8 per cent growth in the current financial year. Higher volumes, however, are against a backdrop of subdued cement prices, which are at multi-year lows.
