JSW Cement, the cement arm of the $13 billion JSW Group, has entered into definitive agreements to raise up to Rs. 1,500 crore from two global private equity investors, Apollo Global Management Inc. (through its managed funds) and Synergy Metals Investments Holding.
On April 19, Moneycontrol had first reported that Apollo Global and Synergy were eyeing a minority stake in IPO-bound JSW Cement
According to the official announcement, “ the transaction is a structured private equity deal wherein compulsorily convertible preference shares (CCPS) are being issued to the investors and the conversion of such CCPS into common equity of the company will be linked to the company’s future performance and valuation determined at the time of the initial public offering. This investment will help JSW Cement accelerate its capacity expansion from current 14 MTPA to 25 MTPA. “
The Competition Commission of India has recently approved the transaction by Synergy Metals Investment Holding Ltd. Apollo’s transaction is subject to customary closing conditions including regulatory approval, the announcement added.
Parth Jindal, Managing Director of JSW Cement said, “JSW Cement is one of the fastest growing cement companies and the largest green cement company in India. In a very short span of 3 years we have increased our capacity from 6MTPA to 14MTPA and are now working towards achieving the 25MTPA milestone over the next 24 months. Synergy and Apollo are amongst the strongest investors globally and JSW Cement is pleased to partner with them in the next phase of our growth. This is a critical time for the company in our quest to be amongst the top 5 cement companies in India and we are delighted to have them on board. Apart from strategic capital to finance our growth, investments by Apollo and Synergy bring with them deep validation and trust in our brand. I would like to take this opportunity to welcome both investors on board and look forward to a long and fruitful association
Sudhir Maheshwari, Founder and Managing Partner of Synergy Metals Investments Holding Ltd, “We are excited to forge this partnership with JSW Cement to help propel its growth plans. India presents the most exciting construction and infrastructure story globally. We were immediately drawn to JSW Cement’s unique focus on green building materials. We are looking forward to our collaboration with Parth Jindal, a dynamic and promising young business leader of India, and the highly professional management team of JSW Cement to build a world-class organisation.”
“We are thrilled to support JSW Cement’s expansion plans, which is one of the fastest growing cement companies in India and is well positioned for long-term growth. We are excited as this is our Hybrid Value Fund’s first investment in India and allows us to deepen our relationship with the JSW Group. We look forward to working closely with Parth Jindal and his talented team as they scale the business further,” added Utsav Baijal, Senior Partner and Head of India Private Equity at Apollo Global Management.
Citigroup Global Markets India Private Limited acted as exclusive placement agent on this transaction for JSW Cement. JSW Cement and its promoter are being advised by Khaitan & Co.
A CLOSER LOOK AT THE INVESTORS
Synergy Metals and Mining Fund, the ultimate parent entity of Synergy Metals Investments Holding Ltd., is a specialised private equity fund investing in the industrial, metals and power sectors globally. The Fund focuses on special situations where Synergy can drive value through active management and operational transformation.Apollo Global Management is a leading global alternative asset manager with offices in New York, Los Angeles, London, Frankfurt, Madrid, Mumbai, New Delhi, Singapore, Hong Kong, Shanghai and Tokyo, among others. Apollo had assets under management of approximately $461 billion as of March 31, 2021. The firm's Hybrid Value business provides flexible, tailored equity and debt capital solutions to private and public companies.