JSW Cement Targets Rs 4,000-Crore IPO in January 2025, Says Sajjan Jindal
After months of uncertainty, JSW Cement is gearing up to launch its much-anticipated Rs 4,000-crore IPO in January 2025, as revealed by JSW Group chairman Sajjan Jindal in an interview with CNBC-TV18 on November 20. This marks a significant milestone for the company, which had its IPO plans put on hold by the Securities and Exchange Board of India (SEBI) back in September.
The Roadblock
SEBI’s intervention in September stemmed from allegations of regulatory violations. Reports suggested that the issue involved an inter-se transfer of investments by Hexa Securities and Finance Co., a company where several members of the Jindal family, including Sajjan Jindal, held director positions. These claims led to a temporary freeze, creating ripples across the financial market.
The IPO Breakdown
According to the draft red herring prospectus (DRHP) filed earlier, the IPO will consist of a fresh issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) worth Rs 2,000 crore. The OFS will see major investor shareholders divest their stakes, including:
AP Asia Opportunistic Holdings Pte. Ltd: Rs 937.5 crore
Synergy Metals Investments Holding Ltd: Rs 937.5 crore
State Bank of India (SBI): Rs 125 crore
Where the Money Will Go
JSW Cement has ambitious plans for the proceeds from the IPO:
1. Expanding Capacity: Rs 800 crore will fund the establishment of a state-of-the-art integrated cement unit in Nagaur, Rajasthan, taking their manufacturing capacity closer to their goal of 60 million tonnes per annum (MTPA). To put this in perspective, the company’s current capacity is 19 MTPA.
2. Debt Reduction: Rs 720 crore will be used to trim existing debt, ensuring a stronger balance sheet.
3. General Corporate Purposes: The remaining funds will bolster the company’s overall operations and growth initiatives.
JSW Cement’s Growing Footprint
With manufacturing units spread across the country—from Vijayanagar in Karnataka to Dolvi in Maharashtra—JSW Cement has established a strong presence. Its subsidiary, Shiva Cement, operates a clinker unit in Odisha, further strengthening its production capabilities. The company’s vision of scaling up to 60 MTPA aligns with India’s booming infrastructure needs, much like how JSW Steel and JSW Infra have capitalized on sectoral growth in recent years.
A Group With Diverse Interests
The JSW Group isn’t just about cement. From steel and energy to sports (think JSW-owned football and kabaddi teams) and real estate, the conglomerate has a finger in many pies. Their previous IPO, JSW Infra, set a solid precedent, and all eyes are now on JSW Cement to deliver similar success.
With the IPO date set and plans in motion, JSW Cement is betting big on India’s infrastructure story. If all goes well, January 2025 could mark another chapter of growth for this industrial powerhouse.
