The issue comprises a fresh equity sale of Rs 2,000 crore and an offer for sale (OFS) of Rs 2,000 crore. Under the OFS, AP Asia Opportunistic Holdings, Synergy Metals and State Bank of India will offload part stakes.
In the public offer, about 50% is reserved for qualified institutional buyers, 15% for non-institutional investors and the rest 35% for retail investors.
The net proceeds from the public offer will be used for partly financing the proposed cement unit in Nagaur, Rajasthan, repayment of debt and other general corporate purposes.
JSW Cement is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement and portland composite cement and ground granulated blast furnace slag (“GGBS”).It also manufactures ordinary portland cement, clinker and a range of allied cementitious products such as ready-mix concrete (“RMC”), screened slag, construction chemicals and waterproofing compounds.The industrial and commercial building sector is expected to grow at a CAGR of 6-7%, respectively from fiscal 2024 to fiscal 2029.Further from FY25-29, Indian cement demand is expected to grow at a healthy 6.5-7.5% CAGR; and from FY24-29, the Indian RMC industry is expected to grow at a CAGR of 10-12%, which in turn will increase the demand for blended cement, GGBS, OPC, clinker and allied cementitious products.
In FY24, the company’s revenue from operations increased to Rs 6,028 crore from Rs 5837 crore in the preceding year. Meanwhile net profit declined to Rs 62 crore from Rs 104 crore a year earlier.
JM Financial, Axis Capital, Citi group, Kotak Investment Banking are among the bookrunning lead managers of the IPO.