Sebi puts JSW Cement’s ₹4,000 crore IPO in ‘Abeyance’

The Securities and Exchange Board of India (Sebi) has put on hold the proposed ₹4,000-crore initial public offering (IPO) of JSW Cement. Sebi did not gave specific reasons for this action, merely stating that the "issuance of observations (has been) kept in abeyance," as noted in an update on its website on Monday.

JSW Cement, a subsidiary of the JSW Group, submitted its preliminary IPO documents to Sebi on August 16. The proposed IPO consists of a new equity share issue valued at ₹2,000 crore and an offer-for-sale (OFS) of ₹2,000 crore by existing shareholders, according to the draft red herring prospectus (DRHP).

Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd are set to sell shares worth ₹937.5 crore each, while the State Bank of India (SBI) plans to divest shares valued at ₹125 crore.

The fresh issue proceeds of ₹800 crore are intended to partly finance the creation of a new integrated cement unit in Nagaur, Rajasthan. Additionally, ₹720 crore will be used to reduce debt, with the remaining funds allocated for general corporate purposes.

JSW Cement, which currently has an annual production capacity of 19 million tonnes, aims to expand to 60 million tonnes per annum. Its existing facilities are located in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Additionally, through its subsidiary Shiva Cement, it operates a clinker unit in Odisha.

The JSW Group has diversified interests in steel, energy, maritime infrastructure, defence, B2B e-commerce, real estate, paints, sports, and venture capital.

The IPO process is being managed by JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.

(With inputs from PTI)