The Securities and Exchange Board of India (SEBI) has officially lifted the suspension on JSW Cement Ltd's initial public offering. The IPO should now follow the standard regulatory process, with final approval anticipated within the next 30-60 days.
In September 2024 SEBI paused the IPO proceedings without an explanation, after JSW Cement had filed its draft prospectus for an IPO in August 2024. The IPO will raise approximately INR40,000m (US$465.5m), comprising a fresh issue of INR2000 and an equal amount through an offer for sale.
Of the INR40,000m to be raised, INR8000m will be used to partially fund the establishment of a new cement unit in Nagaur, Rajasthan. Additionally, the company plans to utilise part of the funds to pay down corporate borrowings. The IPO will also enable existing investors to exit by selling a portion of their stake, offering an exit opportunity for early investors. JSW Cement has a cement capacity of 20.6Mta as of March 2024.
