JSW Cement IPO has received approval from SEBI to launch a Rs 4,000-crore IPO.
JSW Cement IPO : JSW Cement has finally received approval from the SEBI to move forward with its Rs 4,000-crore IPO plans. In contrast, Rahee Infratech announced the withdrawal of its draft papers last week.
The capital markets regulator issued an observation letter on the draft papers of JSW Cement on January 6, according to the latest processing status of draft offer documents published on Monday. Moneycontrol was the first to report on January 9 that JSW Cement was likely to receive SEBI’s approval for its IPO.
SEBI had put the issuance of observations on JSW Cement’s draft papers on hold since September 2024. In the same month, Moneycontrol reported, based on sources, that SEBI was investigating a potential regulatory violation related to the transfer of investments held by Hexa Securities and Finance Co., where several Jindal family members, including Sajjan Jindal, held director positions.
In November 2024, JSW Group chairman Sajjan Jindal informed CNBC-TV18 that JSW Cement was planning to launch its Rs 4,000-crore IPO in January 2025.
The IPO will consist of a fresh issuance of equity shares worth Rs 2,000 crore and an offer-for-sale of up to Rs 2,000 crore by investors. AP Asia Opportunistic Holdings and Synergy Metals Investments Holding will each sell shares worth Rs 937.5 crore in the offer-for-sale, while State Bank of India will offload the remaining shares worth Rs 125 crore.
JSW Cement intends to use Rs 800 crore from the fresh issue proceeds to partially finance the establishment of a new integrated cement unit in Nagaur, Rajasthan, and another Rs 720 crore to repay debt. As of June 2024, the company has already invested Rs 287.8 crore in its Nagaur cement unit out of the total estimated cost of Rs 2,697.3 crore. The remaining amount of Rs 2,409.4 crore of the estimated cost will be funded from IPO proceeds (Rs 800 crore) and project loan (Rs 1,609.4 crore).
As of fiscal 2024, the total debt on the books amounted to Rs 5,835.8 crore.
The merchant bankers overseeing the JSW Cement IPO include JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company, and SBI Capital Markets.
On the other hand, Rahee Infratech, based in Kolkata, has chosen to retract its preliminary IPO papers submitted on January 10.
The railway civil engineering, manufacturing, and construction company had initially filed draft papers with SEBI to raise funds through an initial share sale. The IPO consisted of a combination of fresh shares worth Rs 420 crore and an offer-for-sale of 27.8 lakh shares by the promoters.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.