CORPORATE
SEBI puts on hold JSW Cement’s Rs 4,000-crore IPO without spelling out reasons
- IBJ Bureau
- Sep 03, 2024
Capital markets regulator SEBI has put on hold the proposed Rs 4,000-crore initial public offer (IPO) of JSW Cement.
Without specifying reasons, the SEBI has stated that the “issuance of observations (has been) kept in abeyance”, according to an update on its website. JSW Cement, a part of the diversified JSW Group, had filed the preliminary IPO papers with the SEBI on August 16.
The proposed issue involves 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, according to the Draft Red Herring Prospectus (DRHP) filed with the regulator.
Under the OFS, AP Asia Opportunistic Holdings and Synergy Metals Investments Holding will offload shares worth Rs 937.5 crore each and State Bank of India (SBI) will divest shares valued at Rs 125 crore.
Proceeds from the fresh issue to the tune of Rs 800 crore will be used for partially financing the establishment of a new integrated cement unit in Nagaur, Rajasthan, while Rs 720 crore will be allocated for payment of debt and the remaining funds will be allocated for general corporate purposes. JSW Cement, which has a manufacturing capacity of 19 mt annually, aims to achieve the capacity of 60 mtpa.
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