Exclusive: JSW Cement’s ₹4,000 cr IPO to hit D-Street on Aug 7

The highly awaited initial public offering (IPO) of JSW Cement is set to hit Dalal Street in the first week of August. The public issue of the Sajjan Jindal-promoted cement company will open for subscription on August 7 and close on August 11, industry sources told Fortune India. The anchor book will open for a day on August 6.

The company is looking to raise around ₹4,000 crore from investors, and the price band for the issue will be announced early next week, according to sources.

JSW Cement filed its IPO papers with the capital market regulator Securities and Exchange Board of India (Sebi) on August 16, 2024, and received approval in January 2025.

This is going to be the first major public offering in the cement space since Nuvoco Vistas' ₹5,000 crore issue in August 2021. Also, this will become the fourth company of the steel-to-power conglomerate to get listed on the domestic bourses after JSW Infrastructure on October 3, 2023.

As per the DRHP filed with the Sebi, JSW Cement IPO is a mixture of a fresh issue of equity shares worth ₹2,000 crore of face value of ₹10 each and another ₹2,000 crore through an offer for sale (OFS) by existing shareholders, totaling ₹4,000 crore.

Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd. and Synergy Metals Investments Holding will offload shares worth ₹937.50 crore each, while State Bank of India (SBI) will pare stock worth ₹125 crore.

Out of the proposed ₹2,000 crore fresh equity capital, the company intends to use ₹800 crore for funding the cost of establishing a new integrated cement unit at Nagaur (Rajasthan), and ₹720 crore to repay debts availed by it. A part of the capital will be utilised to meet general corporate purposes. As of March 31, 2024, the total debt under the various financing arrangements of the company stood at ₹5,835.76 crore.

The JSW group company plans to set up a greenfield integrated cement unit at Nagaur, consisting of clinker capacity of 3.30 million tonnes per annum (MTPA) along with grinding capacity of 2.50 MTPA. The Nagaur project will utilise limestone to manufacture clinker which shall further be milled to produce ordinary portland cement (OPC) and portland pozzolana cement (PPC).

In May 2024, Parth Jindal, Managing Director of JSW Cement, announced plans to invest around ₹3,000 crore for establishing a cement plant in Nagaur, to be financed through a mix of equity and long-term debt. Besides, in February last year, the company had announced plans to establish mega projects in Odisha, including a 10 MTPA cement plant, a 900 MW power plant, a 52 MTPA greenfield jetty port, and a 13.2 MTPA steel plant. This venture was slated to involve a cumulative investment of ₹65,000 crore.

Currently, JSW Cement has plants in Karnataka's Vijayanagar, Andhra Pradesh's Nandyal, West Bengal's Salboni, Odisha's Jajpur, and Maharashtra's Dolvi.

JSW Cement is one of the fastest-growing cement manufacturing company in India in terms of increased installed grinding capacity and sales volume from fiscal 2014 to fiscal 2024, according to a CRISIL report mentioned in the DRHP. The company’s installed grinding capacity and sales volume grew at compound annual growth rates (CAGR) of 14.14% and 19.06%, respectively during this period.

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. 

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