JSW Cement gets SEBI nod to float Rs 4,000-crore IPO

JSW Cement IPO

JSW Cement finally has received approval from the SEBI to go ahead with its Rs 4,000-crore IPO plans. On the other hand, Rahee Infratech has announced withdrawal of its draft papers last week.

The capital markets regulator has issued observation letter on draft papers of JSW Cement on January 6, as per the latest processing status of draft offer documents published on Monday. On January 9, Moneycontrol first reported that JSW Cement may get SEBI nod soon for its IPO.

The SEBI had kept the issuance of observations on draft papers of JSW Cement in abeyance since September 2024. In the same month, Moneycontrol had reported, citing sources, that SEBI was 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.

In November 2024, JSW Group chairman Sajjan Jindal had told CNBC-TV18 that JSW Cement aimed to launch its Rs 4,000-crore IPO in January 2025.

The IPO will comprise a fresh issuance of equity shares worth Rs 2,000 crore, and an offer-for-sale of up to Rs 2,000 crore by investors.

Investors AP Asia Opportunistic Holdings, and Synergy Metals Investments Holding will be selling shares worth Rs 937.5 crore each in the offer-for-sale, and the remainder shares worth Rs 125 crore will be offloaded by State Bank of India.

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The JSW Group company intends to utilise Rs 800 crore out of the fresh issue proceeds for part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan, and further Rs 720 crore for repaying debt.

The cement manufacturing company has already deployed Rs 287.8 crore in its Nagaur cement unit till June 2024, out of total estimated cost of Rs 2,697.3 crore. The remaining amount of Rs 2,409.4 crore of the estimated cost will be funded from IPO proceeds (Rs 800 crore) and project loan (Rs 1,609.4 crore).

The total debt on its books as of fiscal 2024 was Rs 5,835.8 crore.

The merchant bankers handling the JSW Cement IPO will be JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company, and SBI Capital Markets.

However, Kolkata-based Rahee Infratech has decided to withdraw its preliminary papers filed for IPO on January 10.

The railway civil engineering, manufacturing and construction company had filed its draft papers with the SEBI to raise funds via initial share sale. The IPO was a mix of fresh issuance of shares worth Rs 420 crore, and an offer-for-sale of 27.8 lakh shares by promoters.