JSW Cement to raise Rs4,000 crore via IPO, files draft papers with Sebi
20 Aug 2024
JSW Group firm JSW Cement has filed draft red herring prospectus with market regulator Securities and Exchange Board of India (Sebi) for an initial public offer (IPO) to raise up to Rs4,000 crore.
As per the draft papers filed with Sebi on Friday, the proposed IPO will comprise a fresh issue and an offer-for-sale (OFS) of an equal size, ie, each having a size of Rs2,000 crore.
JSW Cement plans to utilize Rs800 crore from the IPO proceeds for financing part of the cost of a new integrated cement unit at Nagaur, Rajasthan and Rs720 crore for prepayment or repayment of overdue loans.
The total amount utilized for general corporate purposes will not exceed 25 per cent of the gross proceeds, as per the DRHP.
The OFS part will comprise of Rs125-crore worth of shares being offloaded by State Bank of India (SBI) and shares worth Rs937.5 crore each by AP Asia Opportunistic Holdings Private Ltd and Synergy Metals Investments Holding Ltd.
JSW Cement had a total liability of Rs8,933.42 crore, including loans amounting to Rs1,678.90 crore, overdue payments to major creditors of Rs1,184.40 crore as also other financial liabilities of Rs842.02 crore as of 31 March 2024.
JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are acting as managers to the IPO process.
JSW Cements reported RS6,028.10 crore revenue from operations for FY24 against Rs5,836.72 crore in FY23 and Rs4,668.57 crore in FY22.
Profit for FY24, however, was lower at Rs62 crore against Rs104 crore in FY23.
