If the listing plans of JSW Cement’s materialize, it would mark the largest IPO in the sector since Nirma group-backed Nuvoco Vistas’ Rs 5,000 crore IPO in August 2021.
JSW Group Enlists Bankers for JSW Cement’s IPO
Sajjan Jindal’s JSW Group has engaged investment bankers to facilitate the JSW Cement IPO, aiming to raise up to Rs 6,000 crore. The funds will support the company’s ambitious expansion plans, with Parth Jindal leading the green cement maker’s bid to become one of the nation’s top five cement producers, targeting a capacity of 60 million tonnes per annum within the next five years.
About JSW Cement
JSW Cement operates under the diversified JSW Group, which boasts a robust portfolio spanning various sectors, including steel, energy, infrastructure, paints, sports, and venture capital.
As a prominent player in the Indian cement industry, JSW Cement holds a leading position as a green cement company, currently possessing a production capacity of 19 MTPA. This capacity is spread across manufacturing units located in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), Dolvi (Maharashtra), and Fujairah (UAE), among other locations. Mr. Parth Jindal serves as the Managing Director for both JSW Cement and JSW Paints.
JSW Group Owner
Sajjan Jindal, chairman of JSW Group, is a billionaire known for his success in the steel industry. He kickstarted his professional journey in 1982 with a steel plant. Presently, he leads JSW Steel, the largest steel company in the country.
Bankers Onboard and Potential PE Exit
Several domestic and foreign investment banks, including JM Financial, Kotak Mahindra Capital, DAM Capital, Jefferies, Citi, Goldman Sachs, and SBI Capital, have been tapped for the IPO. The proposed IPO may also offer an exit opportunity for private equity investors Apollo Global Management and Synergy Metals Investments Holding.
Strategic Timing and Market Support
With the recent IPO of JSW Infrastructure and the JSW-MG Motor deal completed, attention now shifts to JSW Cement’s IPO listing. Positive market conditions further bolster the belief that the IPO process should commence now for a post-election listing.
JSW Cement’s Growth Trajectory
CRISIL Ratings, in a report from March 3, 2023, highlighted JSW Cement’s healthy operating efficiency, expanding geographical presence, and a positive outlook for the cement sector. The firm, with revenues rising from Rs 3,878 crore as of March 31, 2021, to Rs 4,677 crore as of March 31, 2022, previously raised Rs 1,500 crore from global private equity investors Apollo Global Management Inc. and Synergy Metals Investments Holding in July 2021.
JSW Cement’s Investment Plans
JSW Cement plans to invest Rs 18,000 crore to increase capacity to 60 million tonnes over the next five years. The company, with manufacturing units across Karnataka, Andhra Pradesh, West Bengal, Odisha, and Maharashtra, is positioned in the entire building materials value chain, offering green products like “GreenCrete” – India’s environmentally friendly RMC product.
By staying true to its commitment to sustainability and expansion, JSW Cement positions itself for a substantial initial public offering that could reshape the industry landscape.
For investors, this could present exciting opportunities and potential gains as the company expands, creating a positive impact on the market.
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