JSW Cement is ready to hit Dalal Street. The company, led by Parth Jindal and backed by JSW Group, is all set to launch its IPO in early August. But here’s the twist — it’s trimming the size of the offer.
Originally planned at $462 million (around ₹4,000 crore), the IPO will now be ₹3,600 crore or $415 million. The primary portion has been reduced to ₹1,600 crore while the ₹2,000 crore secondary component remains unchanged.
Despite the cut, the company is chasing a strong IPO valuation of around $2.3 billion (₹20,000 crore). This will be the first major cement IPO since Nirma Group-backed Nuvoco Vistas went public in 2021.
This move also marks another big step for JSW Group. After a 13-year gap, JSW Infrastructure was listed in October 2023. Now, JSW Cement is joining the IPO club, and it’s making waves in a competitive market.
A Big Bet in Cement
JSW Cement is entering a tough space. The cement sector is heating up, with Ultratech Cement and Adani’s ACC-Ambuja battling for the top spot. But JSW Cement has its strategy in place.
Since starting operations in 2009, the company has expanded fast. It now runs seven plants across India. As of March 2024, it had a grinding capacity of 20.60 million tonnes per year and a clinker capacity of 6.44 million tonnes.
And it’s not stopping. The goal is to double capacity — 40.85 MMTPA grinding and 13.04 MMTPA clinker soon, and to eventually hit a total of 60 MMTPA.
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What Will the IPO Fund?
The funds raised from the IPO will be used for three main things:
- Building a new cement unit at Nagaur in Rajasthan
- Paying off debt
- General corporate expenses
This expansion could help JSW Cement grow faster in northern and western India.
Who’s Backing the Sale?
Big names are behind the offer-for-sale:
Apollo Global Management, Synergy Metals Investment Holding, and SBI.
Top investment banks like JM Financial, Kotak Mahindra Capital, Jefferies, Axis Capital, Citi, Goldman Sachs, DAM Capital, and SBI Capital are handling the IPO process. Khaitan & Co. is the legal advisor.
The Green Push
JSW Cement stands out for its green products. It makes blended cement, including portland slag and composite cement, along with ordinary portland cement and ready-mix concrete. The company also produces construction chemicals and waterproofing products.
With the IPO coming up in early August, all eyes are on JSW Cement. If successful, this could be a strong signal for India’s cement market and the JSW Group’s continued rise in heavy industries.
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