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Public subscription for the Initial Public Offering (IPO) of JSW Cement ends today.

SW Cement's initial public offering worth 3,600 crores starts public subscription today, priced between ₹139 and ₹147 per share, with a minimum investment of 102 shares per lot.

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Cement corporation, JSW, finalizes public share offering today
Cement corporation, JSW, finalizes public share offering today

Public subscription for the Initial Public Offering (IPO) of JSW Cement ends today.

JSW Cement, a key arm of the JSW Group, is set to raise funds through an initial public offering (IPO) worth ₹3,600 crore. The IPO comprises a fresh issue of equity shares worth ₹1,600 crore and an offer for sale (OFS) of shares totaling ₹2,000 crore, offered by existing shareholders.

The OFS sellers include Apollo Management via AP Asia Opportunistic Holdings Pte Ltd, Synergy Metals Investments Holding, and State Bank of India, with shares worth ₹931.80 crore, ₹938.50 crore, and ₹129.70 crore respectively.

The IPO price band has been set between ₹139 and ₹147 per equity share, and the minimum lot size is 102 shares. The IPO is structured with up to 50% reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and at least 35% for retail investors. Institutional investors have shown strong interest, with the QIB category subscribed 15.8 times and NIIs nearly 11 times.

The fresh issue includes about 10.88 crore shares, while the OFS includes approximately 13.60 crore shares. The proceeds from the fresh issue will be utilised for various purposes, including partly funding a new integrated greenfield cement plant in Nagaur, Rajasthan, repayment or prepayment of existing borrowings, and general corporate purposes.

Post-IPO, the promoters' shareholding is expected to reduce from 78.61% to 72.33%. The IPO is set to close today.

JSW Cement, which operates seven plants in India, including one integrated unit, one clinker unit, and five grinding units, has a current installed grinding capacity of 20.6 million tonnes per annum and targets expansion to 42 MTPA. The company's product portfolio includes blended cement, GGBS, OPC, clinker, and a range of allied cementitious products.

The IPO has garnered 0.56 times interest from investors. Anchor investors, including Nomura, Government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Investment Fund, Goldman Sachs (Singapore) Pte, and Kuwait Investment Authority, have invested ₹1,080 crore in JSW Cement's IPO.

JSW Cement Limited is a part of the JSW Group, a multinational conglomerate with a diversified portfolio of businesses. The book-running lead managers to the Offer are JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DAM Capital Advisors Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited. KFin Technologies Limited is the registrar of the Offer.

SBI Mutual Fund (MF), Nippon India MF, Tata MF, Aditya Birla Sun Life MF, Motilal Oswal MF, and SBI Life Insurance Company are among the investors in JSW Cement's IPO. The issue size of the IPO has been trimmed from ₹4,000 crore to ₹3,600 crore.

In summary, the IPO is designed to fund capacity expansion primarily in Rajasthan, reduce debt to strengthen the balance sheet, and support general corporate growth, while also allowing key shareholders to partially exit. This strategic capital raise supports JSW Cement’s pan-India growth ambition and ESG-focused product leadership.

  1. The proceeds from the IPO will be utilized for various purposes, including financing a new integrated greenfield cement plant in Nagaur, Rajasthan, and repaying existing borrowings.
  2. Institutional investors, such as Nomura, Government of Singapore, Abu Dhabi Investment Authority, and Kuwait Investment Authority, have shown strong interest in the IPO, investing a combined ₹1,080 crore.
  3. JSW Cement aims to expand its current installed grinding capacity of 20.6 million tonnes per annum to 42 MTPA.
  4. The IPO is structured to cater to various investors, with up to 50% reserved for qualified institutional buyers, 15% for non-institutional investors, and at least 35% for retail investors.
  5. With a diversified portfolio of businesses, the JSW Group, the parent company of JSW Cement, is a multinational conglomerate.
  6. Businesses such as SBI Mutual Fund (MF), Nippon India MF, Tata MF, Aditya Birla Sun Life MF, Motilal Oswal MF, and SBI Life Insurance Company are among the investors in JSW Cement's IPO, which seeks to raise funds through the offering of equity shares.

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