Sebi places JSW Cement's Rs 40 Bn IPO on hold

03 Sep 2024 CW Team

The proposed IPO includes a fresh issue of equity shares worth Rs 20 billion and an offer-for-sale (OFS) of Rs 20 billion by investor shareholders, as outlined in the draft red herring prospectus (DRHP) submitted to the regulator. Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd are set to offload shares worth Rs 9.37 billion each, while the State Bank of India (SBI) will divest shares valued at Rs 125 crore.

The proceeds from the fresh issue will be allocated as follows: Rs 8 billion for partially financing the establishment of a new integrated cement unit in Nagaur, Rajasthan, Rs 7.2 billion for debt repayment, and the remaining funds for general corporate purposes.

JSW Cement, which currently has a manufacturing capacity of 19 MT annually, aims to increase its capacity to 60 MTPA. The company operates manufacturing units in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Additionally, through its subsidiary Shiva Cement, it operates a clinker unit in Odisha.

JSW Group has diversified business interests in sectors such as steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports, and venture capital. The company's IPO process is being managed by JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.

The capital markets regulator Sebi has put on hold the proposed Rs 40 billion initial public offering (IPO) of JSW Cement. Sebi did not provide specific reasons for this decision but stated that the issuance of observations has been kept in abeyance, according to an update on its website on Monday. JSW Cement, a part of the diversified JSW Group, had filed the preliminary IPO papers with Sebi on August 16. The proposed IPO includes a fresh issue of equity shares worth Rs 20 billion and an offer-for-sale (OFS) of Rs 20 billion by investor shareholders, as outlined in the draft red herring prospectus (DRHP) submitted to the regulator. Under the OFS, AP Asia Opportunistic Holdings Pte. Ltd and Synergy Metals Investments Holding Ltd are set to offload shares worth Rs 9.37 billion each, while the State Bank of India (SBI) will divest shares valued at Rs 125 crore. The proceeds from the fresh issue will be allocated as follows: Rs 8 billion for partially financing the establishment of a new integrated cement unit in Nagaur, Rajasthan, Rs 7.2 billion for debt repayment, and the remaining funds for general corporate purposes. JSW Cement, which currently has a manufacturing capacity of 19 MT annually, aims to increase its capacity to 60 MTPA. The company operates manufacturing units in Vijayanagar (Karnataka), Nandyal (Andhra Pradesh), Salboni (West Bengal), Jajpur (Odisha), and Dolvi (Maharashtra). Additionally, through its subsidiary Shiva Cement, it operates a clinker unit in Odisha. JSW Group has diversified business interests in sectors such as steel, energy, maritime infrastructure, defence, B2B e-commerce, realty, paints, sports, and venture capital. The company's IPO process is being managed by JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Private Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd.

Infrastructure Transport

15 Sep 2025

Cabinet Approves Key Highway and Rail Projects in Bihar Region

The Union Cabinet on Wednesday approved the four-laning of the 84.2-km Mokama-Munger section of the Buxar-Bhagalpur high-speed corridor, a key industrial region in poll-bound Bihar. The Cabinet also sanctioned the doubling of the 177-km Bhagalpur-Dumka-Rampurhat railway line, which passes through Bihar, Jharkhand, and West Bengal, at a cost of Rs 31.7 billion.The Rs 44.5 billion highway project will be constructed under the hybrid annuity model, a variant of public-private partnership. The Mokama-Munger stretch was the only remaining two-lane section of the 363-km Buxar-Bhagalpur corridor. Fou..

Infrastructure Transport

15 Sep 2025

NGT Issues Notice on Bengaluru Twin Tunnel Project

The National Green Tribunal (NGT) on Wednesday issued notices in response to a petition filed by Bengaluru Praja Vedike and others, challenging the Bengaluru twin tunnel road project. Petitioners claim the project was “hastily announced” and bypassed mandatory environmental impact assessment procedures.Notices have been served to the Karnataka Government, Greater Bengaluru Authority, State Environment Impact Assessment Authority (SEIAA), Bengaluru Smart Infrastructure Ltd (B-SMILE), the Union Ministry of Environment, Forest and Climate Change, and project consultants.The 16.74-km twin-tube..

Real Estate

15 Sep 2025

India’s Residential Sales to Dip Slightly in FY26

Residential sales in India’s seven major cities are projected to decline by up to 3 per cent year-on-year in FY26 to 620–640 million square feet (msf), amid a moderation in sales velocity, according to ratings agency Icra.In FY25, sales stood at 643 msf, down 8 per cent YoY, following a sharp contraction in new launches and moderated demand in the affordable and mid-income segments. This slowdown came after the sector posted a robust compound annual growth rate of 26 per cent in area sales between FY22 and FY24.Icra noted: “Having seen a strong upcycle, the sector entered an equilibrium ..