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  1. JSW Cement's ₹4,000 crore IPO gets SEBI's nod; check objectives and financials

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JSW Cement's ₹4,000 crore IPO gets SEBI's nod; check objectives and financials

Upstox

2 min read | Updated on January 14, 2025, 09:15 IST

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SUMMARY

JSW Cement IPO is a fresh issuance of equity shares aggregating to ₹2,000 crore and an offer-for-sale component of ₹2,000 crore by investor shareholders.

As of March 31, 2024, JSW Cement's total liability was at ₹8,933.42 crore.

As of March 31, 2024, JSW Cement's total liability was at ₹8,933.42 crore.

JSW Cement IPO: Market regulator Securities and Exchange Board of India (SEBI) has given its go-ahead to JSW Cement, which is a part of Sajjan Jindal-promoted JSW Group, to raise ₹4,000 crore via an initial public offering (IPO).

The proposed initial share sale is a fresh issuance of equity shares aggregating to ₹2,000 crore and an offer-for-sale component of ₹2,000 crore by investor shareholders.

Under the OFS, Synergy Metals Investments Holding Ltd, AP Asia Opportunistic Holdings Pte Ltd and State Bank of India (SBI) will offload their shares.

JSW Cement filed draft IPO papers with SEBI in August 2023 and later in September. The regulator kept the firm's IPO plan on hold. SEBI finally gave its observation last week. In SEBI's terminology, observation means approval to float an IPO.

JSW Cement IPO objectives

According to the Draft Red Herring Prospectus (DRHP), the fresh issue proceeds of ₹800 crore will be used to partially finance the establishment of a new integrated cement facility in Rajasthan's Nagaur, ₹720 crore to clear debt, and the remaining part for corporate general purposes.

JSW Cement financials

The JSW Group firm's revenue from operations for the financial year 2023-24 (FY24) was ₹6,028.10 crore, ₹5,836.72 crore in FY23 and ₹4,668.57 crore in FY22.

Its profit after tax stood at ₹62 crore in the fiscal year 2024 and ₹104 crore in FY23.

JSW Cement has an installed grinding capacity of 20.60 million tonnes per annum (MTPA) as of March 2024.

It has manufacturing facilities in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha) and Dolvi (Maharashtra).

The company operates a clinker unit through its subsidiary, Shiva Cement, in Odisha.

Axis Capital Ltd, JM Financial Ltd, DAM Capital Advisors Ltd, Citigroup Global Markets India Pvt Ltd, Goldman Sachs (India) Securities Pvt Ltd, Kotak Mahindra Capital Company Ltd, SBI Capital Markets Ltd and Jefferies India Pvt Ltd are the issue's book-running lead managers.

To know more about IPO listing, schedule and upcoming IPOs, click here.
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