JSW Cement raises Rs1,500 crore from global PE Investors

MUMBAI: JSW Cement, part of the $13 billion JSW Group, has entered into definitive agreements to raise up to Rs1,500 crore from two global private equity investors - Apollo Global Management Inc. (through its managed funds) and Synergy Metals Investments Holding Ltd.

The transaction is a structured private equity deal wherein compulsorily convertible preference shares (CCPS) are being issued to the investors and the conversion of such CCPS into common equity of the company will be linked to the company’s future performance and valuation determined at the time of the initial public offering, JSW Cement in a statement.

The investment will help JSW Cement accelerate its capacity expansion to 25 MTPA from the current 14 million tonnes per annum (MTPA).

"Synergy and Apollo are amongst the strongest investors globally and JSW Cement is pleased to partner with them in the next phase of our growth. This is a critical time for the company in our quest to be amongst the top five cement companies in India and we are delighted to have them on board," said Parth Jindal, managing director, JSW Cement.

JSW Cement, in a span of three years, has raised its capacity from 6 MTPA to 14 MTPA and is now working at boosting it to 25MTPA over the next 24 months.

The company plans to utilise the funds to grow both organically and inorganically and enter new geographies, while expanding its share in existing markets. The company is also planning an initial public offering in the next 12-18 months.

The Competition Commission of India recently approved the transaction by Synergy Metals Investment Holding Ltd. Apollo’s transaction is subject to customary closing conditions including regulatory approval.

"India presents the most exciting construction and infrastructure story globally. We were immediately drawn to JSW Cement’s unique focus on green building materials,” said Sudhir Maheshwari, Founder and Managing Partner of Synergy Metals Investments Holding Ltd,

Synergy Metals and Mining Fund, the parent entity of Synergy Metals Investments Holding Ltd., is a specialised private equity fund investing in the industrial, metals, and power sectors globally. The Fund focuses on special situations where Synergy can drive value through active management and operational transformation.

Apollo Global Management is a global alternative asset manager with offices across the world. Apollo had assets under management of approximately $461 billion as of March 31, 2021.