NEW DELHI: As a precursor to its long-awaited initial public offering, JSW Cement has began to dilute minority equity stake in the company as a clutch of investors (private equity funds) have shown interest in the JSW group company. Synergy Metals Investments Holding Limited is one such investor which is looking to acquire minority stake in JSW Cement, the unlisted entity of JSW.
Synergy Metals Investments is a Dubai-based investment fund that is part of Synergy Metals and Mining Fund I LP (Synergy Fund). Synergy Fund invests in the industrials, metals and power sectors globally. Synergy Metals has sought clearance from the Competition Commission of India, the country’s anti-trust regulator.
Though the size of the acquisition is not known yet, it is said that JSW Cement is looking to dilute its stake ahead of its initial public offer (IPO). Company sources told The New Indian Express that JSW Cement is seeking to dilute $200 million worth of stakes and a clutch of investors, apart from Synergy Metals Investments, have shown interest in acquiring a minority shareholding in the company. Another investor which has shown interest in acquiring stakes in the company is Apollo Global Management.
A company source said that JSW Cement has been planning to get listed on the bourses for the last five years, and it may happen by 2023. The company has been valued at a minimum of $2 billion. JSW Cement was incorporated in 2006, and it is engaged in the production, manufacturing and trading of cement, clinker, ground granulated blast-furnace slag, and related products.
It has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra. It uses the slag from steel manufacturing units to produce Portland Slag Cement and Ground Granulated Blast Furnace Slag (GGBS). The company has a total production capacity of 14 MTPA.