MUMBAI: JSW Cement, the slag-focused cement maker that had scaled down its primary share sale size by Rs 400 crore, has fixed the price-band for the Rs 3,600-crore issue that opens on August 7 at Rs 139-147, valuing it at the upper end at Rs 20,040 crore.
The issue consists of Rs 1,600 crore in fresh issue, making this the largest fresh issue in the cement sector in the past 10 years, and Rs 2,000 crore in offer for sale by Apollo Global, Synergy and SBI, which had collectively invested Rs 1,600 crore in the company in the third quarter of FY22.
The company was planning the IPO in January 2025 but last September the regulator Sebi had withheld permission for alleged regulatory lapses involving the inter-se transfer of investments held by Hexa Securities and Finance in which several Jindal family members, including group chairman Sajjan Jindal, were holding director positions.
The Rs 2,000-crore OFS involves SBI and two other investors AP Asia Opportunistic Holding (Apollo Global) and Synergy Metals Investments Holdings offloading their stakes.
While AP Asia Opportunistic Holdings, and Synergy Metals will be selling shares worth Rs 937.5 crore each in the OFS, SBI will be selling shares worth Rs 125 crore, making a clean profit over its weighted average investment cost of Rs 65.45 per share or 124.6% gains on its investment. The other two investors will be making 115% and 117%, respectively off their investment in four years.
The company intends to utilise Rs 800 crore of the fresh issue proceeds for part financing the capex on a new integrated cement unit at Nagaur in Rajasthan, and a further Rs 720 crore to repay debt which stood at Rs 6,166.6 crore as of March 2025, up from Rs 5,836 crore a year before.
The company has already deployed Rs 287.8 crore in its Nagaur unit till June 2024, out of a total estimated cost of Rs 2,697.3 crore. The remaining Rs 2,409.4 crore will be funded from IPO proceeds (and project loan of Rs 1,609.4 crore).
The company with 20.6 million tonnes of annual capacity, which it is planning to take to 41.8 million over the next four to five years, had filed the IPO papers with Sebi in August 2024, but Sebi kept the approval on hold in September and the final approval was accorded only this January.
On the financial front, revenue from operations stood at Rs 5,813 crore in FY25, down from Rs 6,028 crore in FY24, and Rs 5,836.72 crore in FY23. It reported a loss of Rs 163.77 crore in FY25, as against profit of Rs 62 crore in FY24 and Rs 104 crore in FY23.
Meanwhile, All Time Plastics, which is a major supplier to Ikea (16% of its total revenue of around Rs 550 crore) has also fixed the price bank for its Rs 400 crore issue that opens on August 7, at Rs 260-275.
The IPO includes a fresh issue worth Rs 280 crore and Rs 120 crore in OFs.
The company plans to allocate Rs 143 crore from the fresh issue proceeds to repay outstanding debt and Rs 113.7 crore from acquiring equipment and machinery for the Manekpur facility.
All Time Plastics produces household plastic items for its clients, marketing these products under the clients' own brand names, which is known as white-label manufacturing. Additionally, the company offers consumer products under its own brand name, All Time branded products.
The promoters hold 90.98% shares in the company while the remaining 9.02% is held by public shareholders, including Abakkus Four2Eight Opportunities Fund which owns 7.29% stake and will be exiting the city-based firm.
The white-label manufacturing segment generated 91.66% of its revenue in FY25, whereas All Time branded products contributed 7.56% to the total revenue.
In FY25, it earned Rs 47.3 crore in net profit from an income of Rs 558 crore.