JSW Cement is into Building Materials Cement and is looking raise funds through Fresh Issue and Offer For Sale
JSW Cement IPO: JSW Cement Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.
Promoters of JSW Cement are Sajjan Jindal, Parth Jindal, Sangita Jindal, Adarsh Advisory Services Private Limited and Sajjan Jindal Family Trust and holds 96.79% stake in the company.
Key Details:
- Initial Public Offer comprising of a Fresh Issue of Equity Shares aggregating up to Rs. 2000 crores and an Offer for Sale of Equity Shares aggregating Up to Rs 2000 crores.
- JM Financial, Axis Capital, Citi Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital, SBI Capital Markets have been appointed as lead merchant bankers for the proposed IPO.
- It has appointed KFin Technologies Ltd. as Registrar and Share transfer Agent.
- Company is yet to finalize issue size and some other important details relating to the IPO.
Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 2,000 Crs andby OFS consists of selling of Equity Shares aggregating up to Rs2000 crores is from Investors Selling Shareholders including AP Asia Opportunistic Holdings Pte. Ltd.
., Synergy Metals Investments Holding Limited and State Bank of India...
Objects of the issue:
1) Expansion of Cement Plant at Nagaur, Rajasthan at capex of Rs800 crores, 2) Debt repayment of Rs720 crores, and 3) General corporate purposes.
About Company:
Promoted by JSW Group, JSW Cement is into cement manufactuing. Company's products are produced using high-quality granulated slag, a by-product from JSW Steel plants. This process makes the cement heat-resistant, durable, and more environmentally friendly by reducing the reliance on natural resources and lowering CO2 emissions. JSW Cement's product portfolio includes various grades of Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Portland Slag Cement (PSC). During FY25, company had an installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA).
About Industry:
The Indian cement industry is the second-largest in the world, with an installed capacity of around 690 million tonnes per annum. The sector is a vital contributor to the nation's economy, driven primarily by strong domestic demand from housing, infrastructure, and commercial construction. Government initiatives like "Housing for All" and large-scale projects such as the Bharatmala Pariyojana are key growth drivers. Major players like UltraTech Cement, Ambuja Cements, and Shree Cement dominate the market. The industry is also undergoing a significant shift towards sustainability, with a growing focus on producing "green cement" using industrial by-products and adopting energy-efficient technologies. The industrial and commercial building, rural housing, urban housing industries and infrastructure sectors are expected to grow at a CAGR of 6% - 7%, 6% - 7%, 5%-6% and 9% - 10%, respectively from Fiscal 2024 to Fiscal 2029. Further from Fiscals 2025 to 2029, Indian cement demand is expected to grow at a healthy 6.5-7.5% CAGR; and from Fiscal 2024 to Fiscal 2029, 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. Demand for GGBS in particular is expected to grow at a CAGR of 15.00%-16.00% from Fiscal 2024 to Fiscal 2029.
Source: SEBI, BSE, NSE, DRHP, JSW Cement, Industry Data
Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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