JSW Cement to launch its ₹4,000cr IPO on August 7
What's the story
JSW Cement, a part of the JSW Group, is gearing up to launch its initial public offering (IPO) on August 7. The company has been approved by the Securities and Exchange Board of India (SEBI) for raising ₹4,000 crore through this public issue. The IPO will close on August 11 and consists of a fresh issue worth up to ₹2,000 crore, and an offer for sale (OFS) worth up to ₹2,000 crore by existing shareholders.
Fund allocation
Proceeds to fund Nagaur cement unit
The net proceeds from the JSW Cement IPO will be used to partly finance a proposed cement unit in Nagaur. The funds will also go toward repaying debt and other general corporate purposes. The firm is focused on producing green cementitious products like blended cement, Portland composite cement, and ground granulated blast furnace slag (GGBS).
Product portfolio
JSW Cement's product portfolio
JSW Cement also makes ordinary Portland cement (OPC), clinker, and a range of allied cementitious products like ready-mix concrete (RMC), screened slag, construction chemicals, and waterproofing compounds. The company's focus on green products puts it in a good position to leverage India's growing industrial sector and cement demand.
Financials
FY24 performance and IPO lead managers
In FY24, JSW Cement's revenue from operations increased to ₹6,028 crore from ₹5,837 crore in the previous fiscal. However, its net profit fell to ₹62 crore from ₹104 crore a year earlier. JM Financial, Axis Capital, Citigroup and Kotak Investment Banking are the book-running lead managers for the upcoming IPO.