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Mumbai: State Bank of India (SBI) has acquired a minority stake in JSW Cement Limited at an investment of 100 crore, the cement company said on Tuesday. 

The public sector bank has invested in the company, a part of the $13 billion JSW Group, via compulsorily convertible preference shares (CCPS). The conversion of such CCPS into common equity will be linked to the company’s future business performance and valuation determined at the time of the proposed initial public offering. 

This capital infusion will support JSW Cement’s capacity expansion from current 14 MTPA (million tonnes per annum) to 25 MTPA.

The development comes close on the heels of the 1,500 crore investments made by two global private equity investors, Apollo Global Management Inc. (through its investment entity in Singapore) and Synergy Metals Investments Holding Ltd in JSW Cement earlier this year.

Parth Jindal, managing director of JSW Cement said, “In a short span of three years, we have increased our capacity from 6MTPA to 14MTPA and are now working towards achieving the 25MTPA milestone over the next 24 months. We take great pride in being the recipient of one of SBI’s larger investments through the private equity route. I take this opportunity to welcome SBI as a strategic investor at JSW Cement and look forward to a long & fruitful association with them."

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