Shares of Shiva Cement shot up in trade after Moneycontrol reported citing sources that promoter company JSW Cement is moving closer to file draft papers with regulator SEBI shortly to raise Rs 4,000 crore via an initial public offer (IPO).
JSW Cement's public issue would be the first major IPO in the sector since the Rs 5,000 crore initial share sale of Nirma group-backed Nuvoco Vistas in August 2021.
Shiva Cement (SCL) was acquired by the JSW Group in 2017 and supplies clinker - a key component in cement production - to the parent entity. JSW Cement hold over 59 percent stake in Shiva Cement, as has infused funds into SCL.
Shiva Cement claims it has ample reserves of captive limestone at Khatkurbahal Mines and
has aimed to broaden presence in Odisha, West Bengal, Jharkhand, and Bihar by supplying clinker to JSW Cement’s grinding units in Salboni (West Bengal) and Jajpur (Odisha).
Shiva Cement had posted a wider net loss of Rs 21.65 crore in the June quarter compared to Rs 4.65 crore a year ago. Income from operations too narrowed to Rs 96.60 crore versus Rs 347 crore a year ago. The cement company had recently raised Rs 400 crore via a Rights Issue largely for the repayment of borrowings.
Shares of cement companies are upbeat on the demand outlook, riding on Centre's spend on infrastructure, rural development and the affordable housing push.
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