JSW Cement to launch ₹3,600cr IPO on August 7
What's the story
JSW Cement, a part of the Sajjan Jindal-led JSW Group, is gearing up to launch its ₹3,600 crore initial public offering (IPO) on August 7. The move comes as a reduction from the previously planned issue size of up to ₹4,000 crore. The IPO will be open for public subscription until August 11, with anchor investor bidding starting on August 6.
Offer breakdown
Check out IPO details
The JSW Cement IPO comprises a fresh issue of equity shares worth ₹1,600 crore and an offer for sale (OFS) of up to ₹2,000 crore by investor shareholders. Apollo Management's affiliate AP Asia Opportunistic Holdings Pte Ltd will sell shares worth ₹931.80 crore as part of the OFS. Synergy Metals Investments Holding Ltd will divest shares worth ₹938.50 crore, while State Bank of India (SBI) will offload shares worth ₹129.70 crore.
Fund allocation
Plans to use proceeds for new cement unit
JSW Cement plans to use ₹800 crore of the IPO proceeds to partially fund a new integrated cement unit at Nagaur in Rajasthan. Another ₹520 crore will be used for prepayment or repayment of outstanding borrowings. The remaining funds will be allocated toward general corporate purposes. As of March 31, JSW Cement's total borrowings stood at ₹6,166.6 crore with an installed grinding capacity of 20.60 million metric tons per annum (MMTPA).
Financials
Financial performance of the company
In FY25, JSW Cement's revenue from operations was ₹5,813.1 crore as compared to ₹6,028.10 crore in FY24 and ₹5,836.72 crore in FY23. The company reported a loss of ₹163.77 crore in FY25 after posting profits of ₹62 crore and ₹104 crore in the previous two fiscal years, respectively. As per the CRISIL report data for FY25, JSW Cement is India's largest manufacturer of ground granulated blast furnace slag (GGBS), with an 84% market share in GGBS sales.