SEBI Puts JSW Cement’s Rs.4.000 Crore IPO On Back Burner
SEBI Puts JSW Cement’s Rs.4.000 Crore IPO On Back Burner
Part of the diversified JSW Group, it filed the preliminary papers on 16 August
The Securities and Exchange Board of India (SEBI) has put on hold the proposed Rs.4,000-crore initial public offering (IPO) of JSW Cement.
As per an update, the market regulator stated, “The issuance of observations has been kept in abeyance.”
According to the draft red herring prospectus (DRHP) filed with the regulator, the IPO comprises a new issue of equity shares worth Rs.2,000 crore and an offer-for-sale (OFS) of Rs.2,000 crore by investor shareholders.
Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd will offload shares worth Rs.937.5 crore each and the State Bank of India (SBI) will divest shares valued at Rs.125 crore.
Meanwhile, SEBI can keep issuance of observations in abeyance for 30 days, 45 days, 90 days or more. In market parlance, it is a go-ahead to float a public issue. The observations are issued after receiving a copy of an in-principle approval from all stock exchanges on which the issuer intends to list its securities, offered through the document.
As per the draft papers, proceeds from the fresh issue of Rs.800 crore will be used to partially finance the establishment of a new integrated cement unit in Nagaur, Rajasthan, while Rs.720 crore will be allocated for debt payment. The remaining funds will be allocated for general corporate purposes.
JSW Cement (part of the JSW Group), having a manufacturing capacity of 19 MT annually, aims to achieve a capacity of 60 MTPA.
Currently, it has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra. Besides, its subsidiary Shiva Cement operates a clinker unit in Odisha.
JSW Group has business interests in steel, energy, defence, maritime infrastructure, B2B e-commerce, realty, paints, sports and venture capital.
JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company and SBI Capital Markets are responsible for managing the IPO process of the company.
