Synergy Fund, Apollo Global to invest Rs 1,500 cr in JSW Cement
Cement

Synergy Fund, Apollo Global to invest Rs 1,500 cr in JSW Cement

Apollo Global Management is multiplying down on Sajjan Jindal led JSW Group by joining Synergy Metals Investments for a Rs 1,500 crore capital increase in the conglomerate’s cement business, which is run by his son Parth, to finance its development plans to become 25 million tonnes scaled operations.

The capital increase corresponds with an uptick in demand from real estate and construction after lockdown, which resulted in most cement stocks outperforming the Nifty over the previous month and the last year.

Led by Sudhir Maheshwari, a long time ArcelorMittal executive, Dubai-based Synergy Fund has already desired clearance from the Competition Commission of India for obtaining an equity stake in JSW Cement and got its clearance on July 15th under the green channel route. Apollo is anticipated to sign its final agreement this coming week.

JSW Cement is going to issue Compulsorily Convertible Preference Shares (CCPS) to the two investors, each of them putting in Rs 750 crore at a post-money valuation of around Rs 8,500 to Rs 8,750 crore.

The CCPS have a five-year maturity, or they can be converted into equity shares prior to the company’s planned listing, scheduled in the following 18-24 months.

The investors can own up to 19% of the company upon conversion, and each of them also gets a board seat.

The Jindal family entirely owns JSW Cement. The investments are looked at as the precursor to the company’s initial public listing, which was originally planned for the previous year but got postponed because of the pandemic to the second half of 2022.

Managing Director of JSW Cement, Parth Jindal, told the media in an earlier interaction that the JSW Group was seeking growth equity from external sources to fund its latest round of expansions before the two businesses go public and that the development plans were to be equally financed by a combination of debt and internal growth of Rs 2,000 crore and Rs 1,500 crore of private equity investments.

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Also read: CCI approves stake acquisition in JSW Cement by Synergy Metals

Apollo Global Management is multiplying down on Sajjan Jindal led JSW Group by joining Synergy Metals Investments for a Rs 1,500 crore capital increase in the conglomerate’s cement business, which is run by his son Parth, to finance its development plans to become 25 million tonnes scaled operations. The capital increase corresponds with an uptick in demand from real estate and construction after lockdown, which resulted in most cement stocks outperforming the Nifty over the previous month and the last year. Led by Sudhir Maheshwari, a long time ArcelorMittal executive, Dubai-based Synergy Fund has already desired clearance from the Competition Commission of India for obtaining an equity stake in JSW Cement and got its clearance on July 15th under the green channel route. Apollo is anticipated to sign its final agreement this coming week. JSW Cement is going to issue Compulsorily Convertible Preference Shares (CCPS) to the two investors, each of them putting in Rs 750 crore at a post-money valuation of around Rs 8,500 to Rs 8,750 crore. The CCPS have a five-year maturity, or they can be converted into equity shares prior to the company’s planned listing, scheduled in the following 18-24 months. The investors can own up to 19% of the company upon conversion, and each of them also gets a board seat. The Jindal family entirely owns JSW Cement. The investments are looked at as the precursor to the company’s initial public listing, which was originally planned for the previous year but got postponed because of the pandemic to the second half of 2022. Managing Director of JSW Cement, Parth Jindal, told the media in an earlier interaction that the JSW Group was seeking growth equity from external sources to fund its latest round of expansions before the two businesses go public and that the development plans were to be equally financed by a combination of debt and internal growth of Rs 2,000 crore and Rs 1,500 crore of private equity investments. Image Source Also read: CCI approves stake acquisition in JSW Cement by Synergy Metals

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