JSW Cement Filed DRHP with SEBI: Know More About Upcoming IPO

JSW Cement Limited, one of the prominent player in cement industry has officially filed a Draft Red Herring Prospectus (DRHP) with the SEBI for its upcoming Initial Public Offering (IPO). The public issue is a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 2000 Crore of equity shares and an offer for sale worth up to Rs. 2000 Crore equity shares, which sums up an aggregate total size of up to Rs 4000 Crore equity shares. The face value mentioned by the company is Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. However, the public issue price band at which you can bid will be declared soon.

Also Read | Metalman Auto Limited Files DRHP For Rs 350 Crore IPO

About JSW Cement Limited

JSW Cement Limited is gradually expanding in the Indian cement market. Between Fiscal 2014 and Fiscal 2024, the company's installed grinding capacity and sales volume increased dramatically. At 19.06% sales volume and 14.14% installed grinding capacity CAGR, JSW Cement outperformed the industry norms by a wide margin. With an installed grinding capacity of 20.60 MMTPA as of March 31, 2024, the firm is actively growing its footprint in India through brownfield and greenfield projects. Remarkably, JSW Cement, which specializes in environmentally friendly cementitious materials, is India's biggest manufacturer of ground granulated blast furnace slag (GGBS).

JSW Cement IPO Objectives

JSW Cement intends to use the net proceeds from the fresh issue for various purposes this include financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan estimated amount Rs 800 crore, prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company, estimated amount Rs 720 crore and some fund will allocate for the general corporate purposes.

Financials of the Company

As of March 31, 2024, the company's assets rose to Rs 11,318.91 crores, shows an increase of 10.77% compared to March 31, 2023. Revenue grew by 3.28%, reaching Rs 6,028.10 crores. However, Profit after tax saw a decline of -40.39%, totalling Rs 62.01 crores compared to FY23 that was Rs 104.04 crore. The total borrowing also increased from Rs 5,835.76 crores to Rs 5,421.54. These figures demonstrate substantial growth in key financial areas, although the rise in borrowing and decline in PAT indicates a need to monitor the financial levels closely.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The issue has been managed by several giants: JM Financial Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DAM Capital Advisors Limited, Goldman Sachs (India) Securities Private Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited. For the company, the registrar dealing with the issue is responsible for its management, which is KFin Technologies Limited. Sajjan Jindal, Parth Jindal, Sangita Jindal, Adarsh Advisory Services Private Limited, and Sajjan Jindal Family Trust are the promoters of the company.

Also Read | Senores Pharmaceuticals IPO: Senores Plans to Raise Rs 600 Crore via IPO Route