SEBI puts JSW Cement's ₹4,000 crore IPO on hold
The Securities and Exchange Board of India (SEBI) has temporarily halted the planned initial public offering (IPO) of JSW Cement, valued at ₹4,000 crore. The market regulator did not provide specific reasons for this decision. According to a statement on its website, the "issuance of observations (has been) kept in abeyance." This development comes after JSW Cement submitted its preliminary IPO documents to SEBI on August 16.
IPO structure and shareholder participation
The proposed IPO consists of a fresh issue of equity stocks worth ₹2,000 crore and an offer-for-sale (OFS) of ₹2,000 crore by investor shareholders. According to the draft red herring prospectus (DRHP) submitted to SEBI, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd plan to sell shares worth ₹937.5 crore each. Also, the State Bank of India (SBI) intends to divest shares valued at ₹125 crore.
Planned use of IPO proceeds
JSW Cement plans to allocate ₹800 crore from the fresh issue toward partially funding a new integrated cement unit in Nagaur, Rajasthan. An additional ₹720 crore is earmarked for debt repayment, with the remaining funds set aside for general corporate purposes. The company currently operates manufacturing units in several Indian states, and via its subsidiary Shiva Cement, runs a clinker unit in Odisha.
Expansion plans and IPO management
JSW Cement, with an annual manufacturing capacity of 19MT, aims to increase this figure to 60MTPA. The firm is part of the diversified JSW Group, which has business interests in various sectors including steel, energy, defense, B2B e-commerce, and venture capital. The IPO process for JSW Cement is being managed by several financial institutions including JM Financial Ltd, Goldman Sachs (India) Securities Private Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.
