JSW Cement raised ₹1,080 crore from anchor investors, including global and domestic institutions like Nomura, Abu Dhabi Investment Authority, SBI MF, and Goldman Sachs.
The ₹3,600 crore IPO includes a ₹1,600 crore fresh issue and a ₹2,000 crore Offer for Sale by Apollo Management, Synergy Metals, and SBI.
Proceeds from the IPO will be used to finance a new cement unit in Rajasthan repay debt, and for general corporate purposes.
JSW Cement reported a ₹163.77 crore loss in FY25, following profits in FY24 and FY23.
JSW Cement, part of the diversified JSW Group, on Wednesday mobilised ₹1,080 crore from anchor investors, a day before its initial share-sale opening for public subscription.
This anchor portion witnessed participation from domestic and foreign institutional investors including Nomura, Government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Investment Fund, Goldman Sachs (Singapore) Pte and Kuwait Investment Authority, according to a circular uploaded on BSE's website.
Also, SBI Mutual Fund (MF), Nippon India MF, Tata MF, Aditya Birla Sun Life MF, Motilal Oswal MF and SBI Life Insurance Company are among investors.
As per the circular, JSW Cement has allotted 7,34,69,386 equity shares to 52 funds at ₹147 apiece. This aggregates the transaction size to ₹1,080 crore.
The company has set a price band of ₹139-147 per share, valuing the 17-year-old company at ₹20,000 crore at the upper end of the price band.
The IPO, which includes a fresh issue of ₹1,600 crore of shares and ₹2,000 crore of shares to be sold by current shareholders through Offer for Sale, will be open between August 7-11.
As part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, as well as Synergy Metals Investments Holding Ltd and State Bank of India (SBI) will offload shares.
Synergy Metals Investments Holding is an arm of Synergy Metals and Mining Fund, a private equity fund set up by a former executive of steelmaker ArcelorMittal Sudhir Maheshwari in 2015.
According to the draft papers, the company will utilise proceeds worth Rs 800 crore to part-finance a new integrated cement unit at Nagaur, Rajasthan, and ₹520 crore for payment of debt and the remaining funds for general corporate purposes.
As of March 31, 2025, JSW Cement's total borrowings stood at ₹6,166.6 crore.
The Mumbai-based company had earlier planned to raise ₹4,000 crore. At the time of filing papers, JSW Cement said it intended to raise ₹2,000 crore from a fresh issue of equity shares and an OFS of ₹2,000 crore by investor shareholders. However, the size of the fresh capital-raising has been cut by ₹400 crore from the fresh issue.
When asked about the reasons for scaling down the IPO size from ₹4,000 crore to ₹3,600 crore, Parth Jindal, the managing director of JSW Cement, had stated it is led by business requirements in current times and also to make future dilutions possible. At the time of announcing the IPO, the cement industry's condition was not as good, necessitating a higher sum of money, he had added.
On the financial front, the company's revenue from operations for FY25 stood at ₹5,813.1 crore against ₹6,028.10 crore in FY24, and ₹5,836.72 crore in FY23. The company reported a loss of ₹163.77 crore in FY25. Its profit was ₹62 crore in FY24 and ₹104 crore in FY23.
As of March 31, 2025, JSW Cement had an installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA).
