JSW Cement gets Sebi nod for Rs 4,000 crore IPO

As per the latest papers, the IPO will comprise a fresh issue worth Rs 2,000 crore, and an offer-for-sale of up to Rs 2,000 crore by investors.
The logo of JSW is seen on the company's headquarters in Mumbai, India.
The logo of JSW is seen on the company's headquarters in Mumbai, India. (File photo)
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MUMBAI: JSW Cement has finally received the regulatory approval to float a Rs 4,000 crore initial share sale plan. Capital markets regulator Sebi issued observation letter on the draft papers last week. Sebi has kept the approval pending since last September.

According to the latest processing status of the draft offer documents published on Monday, the company said it has received the Sebi nod. As per the latest papers, the IPO will comprise a fresh issue worth Rs 2,000 crore, and an offer-for-sale of up to Rs 2,000 crore by investors.

While external investors AP Asia Opportunistic Holdings, and Synergy Metals Investments Holding will be selling shares worth Rs 937.5 crore each in the offer-for-sale, and the remainder shares worth Rs 125 crore will be offloaded by State Bank of India through the OFS.

The Sebi had kept the issuance of observations on draft papers of JSW Cement in abeyance since September reportedly for alleged violations of inter-se transfer of investments held by Hexa Securities and Finance Co, in which several Jindal family members, including JSW group chairman Sajjan Jindal, were directors.

The issuer intends to utilise Rs 800 crore of issue to part finance a new integrated cement unit at Nagaur in Rajasthan and Rs 720 crore to repay debt. The cement manufacturer has already deployed Rs 287.8 crore into the Nagaur unit till June 2024, which will involve a total investment of Rs 2,697 crore.

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