JSW Cement to Trim IPO Size to $415 Million; Targets Early August Launch at $2.3 Billion Valuation

The JSW Cement IPO, which is among the most sought-after by investors, is expected to open to the market in early August, probably by the week of August 4. The public issue of the cement company that was estimated at $462 million (₹4,000 crore) has now been said to be downsized to $415 million (₹3,600 crore), according to sources.

The reduction comes by trimming the primary component from ₹2,000 crore to ₹1,600 crore, while keeping the secondary component unchanged at ₹2,000 crore. The updated draft red herring prospectus (UDRHP) has already been filed.

The IPO is expected to value the company at around $2.3 billion (₹20,000 crore). If launched, it will mark the first major cement sector IPO since Nirma-backed Nuvoco Vistas’ ₹5,000 crore issue in August 2021. It will also be the JSW Group’s second listing in recent years, following JSW Infrastructure’s market debut in October 2023—its first in 13 years.

JSW Cement’s offer-for-sale will see participation from key investors including Apollo Global Management, Synergy Metals Investment Holding, and SBI.

With the commencement in 2009, JSW Cement has rigorously extended the number of sites across India, having finally established up to seven plants. Come March 2024, the company boasts an installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA) and clinker capacity of 6.44 MMTPA. The company has an ambition to raise its grinding capacity to above double, that is, to 40.85 MMTPA, with equipotential expansion of the clinker capacity to 13.04 MMTPA in the long run, before moving towards the aim of 60 MMTPA.

Proceeds will be used to build a new integrated cement mill in Nagaur, Rajasthan, paying off existing debt, and for general corporate purposes.

JSW Cement manufactures various types of green cementitious products; these include blended ordinary portland cement, as well as ready-mix concrete in support of the sustainable construction agenda.

JM Financial, Kotak Mahindra Capital, Jefferies, Axis Capital, Citi, Goldman Sachs, and DAM Capital will manage the IPO for SBI Capital. Khaitan & Co. is the legal adviser in this regard.