JSW Cement, Part of JSW Group, Files Draft Papers for ₹4,000 Crore IPO – State Bank of India Among Sellers

JSW Cement, a part of Sajjan Jindal’s JSW Group, has submitted the necessary documents to SEBI, the capital markets regulator, to raise ₹4,000 crore through an initial public offering (IPO). The IPO will include the sale of new shares worth ₹2,000 crore and an offer for sale (OFS) of ₹2,000 crore, where existing investors like AP Asia Opportunistic Holdings, Synergy Metals, and State Bank of India will sell some of their shares.

In this public offering, 50% of the shares are reserved for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

The money raised from the IPO will be used to help finance a new cement plant in Nagaur, Rajasthan, repay some of the company’s debt, and for other general business purposes.

JSW Cement focuses on making environmentally friendly products like blended cement and Portland composite cement, along with other products such as ready-mix concrete, construction chemicals, and waterproofing compounds. The demand for cement in India is expected to grow steadily at a rate of 6.5-7.5% from FY25 to FY29, which will benefit the company.

In FY24, JSW Cement’s revenue grew to ₹6,028 crore, up from ₹5,837 crore the previous year. However, its net profit dropped to ₹62 crore from ₹104 crore a year earlier.

The IPO is being managed by JM Financial, Axis Capital, Citigroup, and Kotak Investment Banking.