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JSW Cement raised INR 1,080 crore from 52 anchor investors by allotting 7.34 crore shares at the upper end of the price band before its IPO opened. The INR 3,600 crore issue includes a fresh issue of INR 1,600 crore and an offer for sale of INR 2,000 crore. The company plans to use the proceeds for its new Rajasthan plant and to reduce debt. Despite posting a loss in the last fiscal year, the IPO has drawn strong institutional interest, supported by JSW Cement's expansion and sustainability focus.
JSW Cement, part of the JSW Group, has raised INR 1,080 crore from anchor investors ahead of its initial public offering. The shares were allotted at INR 147 each at the top of the price band to 52 institutional investors, including Nomura, BlackRock, Morgan Stanley, Government of Singapore, Abu Dhabi Investment Authority, and SBI Mutual Fund. A total of 7.34 crore shares were allocated. Advertisement
Out of the total anchor investment, nine domestic mutual funds through 16 schemes picked up around 44 percent of the allocation.
The IPO size is INR 3,600 crore, which includes a fresh issue worth INR 1,600 crore and an offer for sale of INR 2,000 crore. The company had earlier planned a larger INR 4,000 crore IPO but revised it to better suit current market conditions and capital needs.
From the fresh issue proceeds, JSW Cement plans to use INR 800 crore to partially fund its integrated greenfield cement plant in Nagaur, Rajasthan, and INR 520 crore will go toward repaying outstanding borrowings. The rest will be used for general corporate purposes.
In the financial year ending March 2024, the company posted a revenue of INR 5,813 crore, down from INR 6,028 crore the previous year. It also reported a net loss of INR 163 crore compared to a net profit of INR 62 crore in the previous fiscal.
Brokerages like Canara Bank Securities and AUM Capital Research have rated the IPO as "subscribe", pointing to the company's expanding capacity, increasing market share, focus on green cement, and synergy with its steel and infrastructure businesses under the JSW Group.
JSW Cement currently has a capacity of 20.6 million tonnes per annum and operates units across several states, including Karnataka, Maharashtra, Odisha, Andhra Pradesh, and West Bengal. The company uses industrial waste like slag and fly ash in its production, contributing to its status as one of the lowest carbon-emission cement producers in the country.
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