JSW Cement, whose Rs 3,600-crore IPO has opened for public subscription, plans to triple manufacturing capacity to 60 million tonnes per annum in the coming years, and the USD 23-billion JSW group firm may tap capital markets to fund its growth, said Managing Director Parth Jindal on Thursday.
JSW Cement plans to grow its capacity organically. However, it may keep looking for acquisition opportunities.
The initial public offering (IPO) of JSW Cement Ltd received 29 per cent subscription on the first day of bidding on Thursday. The issue will conclude on August 11.
The company, which has put a price band of Rs 139-Rs 147 apiece for its IPO, expects to become among top-five players, helped by expansion after listing.
As of now, JSW Cement's internal accruals will be sufficient to get to 42 MTPA" and even for 60 MTPA, but if required, we can always do a QIP and dilute some stake in order to raise the funds. We are also keeping that window open, if any good acquisition comes up, then again, we could dilute some stake and look for the acquisition of any asset," said Jindal.
The company said the June quarter of FY26 was impacted due to unseasonal rains, early arrival of monsoon and geopolitical disturbances.
JSW Cement, had earlier mobilised Rs 1,080 crore from anchor investors.
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 Rs 147 apiece. This aggregates the transaction size to Rs 1,080 crore.
The company has set a price band of Rs 139-147 per share, valuing the 17-year-old company at Rs 20,000 crore at the upper end of the price band.
The IPO includes a fresh issue of Rs 1,600 crore of shares and Rs 2,000 crore of shares to be sold by current shareholders through Offer for Sale.
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.
