Sajjan Jindal-led JSW Group has initiated the process for an initial public offering (IPO) of JSW Cement, with plans to raise about Rs 6,000-crore, which would be the largest in the sector.
The company has roped in an array of bankers – including Goldman Sachs, DAM Capital, Jefferies, Citi, JM Financial, Kotak Mahindra Capital and SBI Capital – to advise it on the IPO. According to the contours of the initial stake sale, which are being finalised, it would include an offer for sale by two private equity investors, sources close to the development told FE.
In 2021, JSW Cement had raised about Rs 1,500 crore from Apollo Global Management and Synergy Metals Investments Holding. In an interview to FE in September last year, JSW Cement managing director Parth Jindal had said that the company was looking to raise about Rs 3,500-4,000 crore through an IPO.
The firm was looking to launch the IPO in 2024 by diluting 10-15% stake, of which 50% will be an offer for sale by the two PE investors.
Further, it would dilute another 10% in the subsequent two years of the IPO to raise about Rs 7,000-9,000 crore. This was under its plans to invest Rs 18,000 crore to grow capacity to 60 million tonne per annum (MTPA) over the next five years from 21 MTPA as of 2023 calendar year end.
“The balance capex funding will be through a mix of internal accruals and debt,” he had said. Sources said that now the company was planning to raise about Rs 6,000-crore through the IPO and not Rs 3,500-4,000 crore as initially planned.
When contacted a company spokesperson declined to comment. JSW Cement was planning to expand its total capacity to 35 MTPA through brownfield expansion across its seven manufacturing sites in India and for the balance 25 MTPA, it was planning to put up integrated cement plants in Rajasthan, Madhya Pradesh and Karnataka.
In October 2023, the group had listed JSW Infrastructure, the group’s ports business, after it received Sebi approval to raise Rs 2,800-crore through an IPO. The IPO was the first from JSW Group in the past 13 years, which comes after the listing of JSW Energy in 2010.
At the time of JSW Infrastructure’s listing, Sajjan Jindal had said that the group was looking to list two-to-three companies soon. JSW Cement’s IPO would be the biggest in the sector since the Rs 5,000 crore initial stake sale by Nuvoco Vistas in August 2021.