JSW Cement Sets January 2025 for Rs 4,000-Crore IPO Launch

JSW Cement plans to roll out its Rs 4,000-crore initial public offering (IPO) in January 2025, JSW Group chairman Sajjan Jindal revealed on November 20. The IPO was previously put on hold by the Securities and Exchange Board of India (SEBI) in September due to an investigation into a regulatory issue concerning inter-se transfers of investments linked to Hexa Securities and Finance Co., a firm with ties to the Jindal family.

The IPO comprises a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore by existing investors. According to the draft red herring prospectus, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd will each offload shares worth Rs 937.5 crore, while State Bank of India (SBI) will divest Rs 125 crore worth of shares under the OFS.

Proceeds from the fresh issue will be strategically allocated, with Rs 800 crore earmarked for a new integrated cement plant in Nagaur, Rajasthan. An additional Rs 720 crore will be used for debt repayment, while the remainder will cover general corporate expenses.

JSW Cement currently operates with an annual manufacturing capacity of 19 million tonnes and is targeting 60 million tonnes per annum (MTPA) in the near future. The company operates plants in Karnataka, Andhra Pradesh, West Bengal, Odisha, and Maharashtra, along with a clinker unit in Odisha through its subsidiary, Shiva Cement.

This IPO marks the second major public offering from the JSW Group, following the successful listing of JSW Infrastructure. Beyond cement, the group has diverse business interests spanning steel, energy, real estate, paints, sports, and venture capital.