JSW Cement aims to launch its Rs 4,000-crore IPO in January 2025: Sajjan Jindal

JSW Cement aims to launch its Rs 4,000-crore IPO in January: Sajjan Jindal

JSW Cement aims to launch its Rs 4,000-crore IPO in January 2025, JSW Group chairman Sajjan Jindal told CNBC-TV18 on November 20.

The Securities and Exchange Board of India (SEBI) had put the IPO on hold in September.

In September, Moneycontrol had reported, citing sources, that SEBI is examining an alleged regulatory violation involving the inter-se transfer of investments held by Hexa Securities and Finance Co., in which several Jindal family members, including Sajjan Jindal, were holding director positions.

The proposed issue involves a new issue of equity shares worth Rs 2,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore by investor shareholders, according to the draft red herring prospectus (DRHP) filed with the regulator.

Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd will offload shares worth Rs 937.5 crore each and State Bank of India (SBI) will divest shares valued at Rs 125 crore.

Proceeds from the fresh issue to the tune of Rs 800 crore will be used for partially financing the establishment of a new integrated cement unit in Nagaur, Rajasthan, while Rs 720 crore will be allocated for payment of debt and the remaining funds will be allocated for general corporate purposes. JSW Cement, which has a manufacturing capacity of 19 MT annually, aims to achieve the capacity of 60 MTPA.

The last IPO from the JSW Group was JSW Infra.

Currently, JSW Cement has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra. Besides, JSW Cement through its subsidiary Shiva Cement operates a clinker unit in Odisha. JSW Group has business interests in sectors such as steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports and venture capital.