State Bank of India (SBI) has acquired a minority stake in JSW Cement by investing Rs 100 crore in compulsorily convertible preference shares (CCPS) of the company, the latter said on Tuesday. The investment will support JSW Cement to expand capacity to 25 million tonnes per annum (MTPA) from 14 MTPA presently.
The conversion of CCPS into common equity of the company will be linked to the company’s future business performance and valuation determined at the time of the proposed initial public offering (IPO), JSW Cements said.
The company is planning to float an IPO in the next 12-18 months, said Narinder Singh Kahlon, director of finance at JSW Cement.“In a short span of three years, we have increased our capacity from 6MTPA to 14MTPA and are now working towards achieving the 25MTPA milestone over the next 24 months…I take this opportunity to welcome SBI as a strategic investor at JSW Cement and look forward to a long & fruitful association with them,” said Parth Jindal, managing director, JSW Cement.
The investment by SBI follows Rs 1,500 crore investments in the company by two global private equity investors — Apollo Global Management through its investment entity in Singapore and Synergy Metals Investments Holding — earlier this year.
