JSW Cement prepares for IPO

JSW Cement has reached out to domestic and foreign investment banks including SBI Capital, Kotak Mahindra Capital, JM Financial, DAM Capital, Jefferies, Citi and Goldman Sachs for advising the company on the proposed initial public offering. JSW Group is preparing the ground for listing its cement business on stock exchanges to raise about INR65000m (US$782.9m), according to The Hindu businessline.

With the intense competition and consolidation in the industry, JSW Cement plans to utilise the IPO funds for expansion, debt reduction and working capital, sources said.

JSW Cement’s initial public offer will be the biggest in the construction material industry after Nirma group backed Nuvoco Vistas raised INR50,000m in August 2021. The cement producer has a capacity of 19Mta across its manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.

The company, which is close to completing 2Mta of expansion, has an ambitious target to achieve 60Mta capacity in next five years through brownfield and greenfield expansion, reports The Hindu businesslike.

The proposed IPO may also provide a partial exit for early private equity investors such as Apollo Global Management and Synergy Metals Investments Holding.