JSW Cement IPO to open on August 7: Institutional investors buy Rs 1,080 crore worth shares via anchor book

JSW Cement IPO

Private equity players Apollo Global Management and Synergy Metals Investments Holding-backed JSW Cement has raised Rs 1,080 crore via anchor book on August 6, of the Rs 3,600-crore IPO.

Total 52 institutional investors participated in the anchor book of the Sajjan Jindal-owned JSW Group company, including nine domestic mutual funds.

JSW Cement in its filing to exchanges today said it has finalised allocation of 7.34 crore equity shares to anchor investors at Rs 147 per share.

Marquee global investors like Nomura Funds, Blackrock, Stichting Depository APG, UBS Fund Management, Government of Singapore, Government Pension Fund Global, Principal Funds, Abu Dhabi Investment Authority, Amundi Funds, Morgan Stanley, Kuwait Investment Authority, Florida Retirement System, Societe Generale, Neuberger Berman, and Goldman Sachs became shareholders in the cement company through anchor book.

Domestic institutional investors like SBI Mutual Fund, SBI Life Insurance Company, Nippon Life India, Aditya Birla Sun Life AMC, Tata Mutual Fund, Motilal Oswal Mutual Fund, Baroda BNP Paribas MF, Chartered Finance & Leasing, Axis Max Life Insurance, PGIM India, Abakkus Asset Manager, and Edelweiss Life Insurance also invested in the company.

"Out of the total allocation of 7.34 crore shares to the anchor investors, 3.26 crore shares were allocated to nine domestic mutual funds which have applied through their 20 schemes," JSW Cement said.

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The IPO, which will remain open during August 7-11, is a combination of fresh issuance of equity shares worth Rs 1,600 crore and an offer-for-sale of Rs 2,000 crore worth shares by investors AP Asia Opportunistic Holdings, Synergy Metals Investments Holding, and State Bank of India.

JSW Cement intends to utilise Rs 800 crore of the fresh issue proceeds for the establishing its new integrated cement unit at Nagaur, Rajasthan. Further, Rs 520 crore will be used for repayment of debt, and the remainder funds for general corporate purposes.

With installed grinding capacity of 20.60 MMTPA, and clinker capacity of 6.44 MMTPA, the company is currently undertaking greenfield and brownfield expansion plans across India, including in the north and central regions, to increase its grinding capacity to 41.85 MMTPA and clinker capacity to 13.04 MMTPA.

The merchant bankers handling the JSW Cement IPO are 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.