JSW Cement Secures ₹1,080 Crore from Anchor Investors as IPO Approaches
JSW Cement has raised ₹1,080 crore from 52 anchor investors, allocating 7.35 crore shares at ₹147 per share. The company's IPO aims to raise up to ₹3,600 crore, with a price band of ₹139-147 per share. The offering includes a fresh issue of ₹1,600 crore and an offer for sale of ₹2,000 crore. Funds will be used for a new cement unit in Rajasthan and debt repayment. Major sellers include Apollo Management and Synergy Metals Investments Holding. The shares will be listed on BSE and NSE.
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JSW Cement, a key player in India's cement industry, has successfully raised ₹1,080 crore from anchor investors, setting the stage for its much-anticipated Initial Public Offering (IPO). This pre-IPO placement marks a significant milestone for the company as it prepares to enter the public market.
Anchor Investment Details
The cement manufacturer allotted 7.35 crore shares to 52 anchor investors at ₹147 per share, which represents the upper end of the IPO price band. Notable among these investors are:
- Black Rock Emerging Frontiers Master Fund
- SBI Multicap Fund
Both of these funds received the highest allocation, with each securing 10.19% of the anchor portion.
Domestic Mutual Funds' Participation
The anchor round saw strong interest from domestic institutional investors:
- Nine domestic mutual funds participated through 20 schemes
- These funds collectively secured 44.45% of the anchor portion
This substantial domestic participation underscores the confidence of institutional investors in JSW Cement's growth prospects.
IPO Overview
JSW Cement is set to launch its IPO with the following key details:
- Price Band: ₹139 - ₹147 per share
- Total Fundraising Target: Up to ₹3,600 crore
- IPO Structure:
- Fresh Issue: ₹1,600 crore
- Offer for Sale: ₹2,000 crore by existing shareholders
Utilization of Funds
The company has outlined clear objectives for the capital raised through the fresh issue:
- ₹800 crore for establishing a new integrated cement unit in Nagaur, Rajasthan
- ₹520 crore for debt repayment
These allocations suggest a focus on expansion and improving the company's financial position.
Major Selling Shareholders
The Offer for Sale component includes shares from several existing investors:
| Shareholder | Amount (in ₹ crore) |
|---|---|
| Apollo Management | 932.00 |
| Synergy Metals Investments Holding | 938.00 |
| State Bank of India | 130.00 |
Listing Details
Post-IPO, JSW Cement's shares are slated to be listed on two major Indian stock exchanges:
- Bombay Stock Exchange (BSE)
- National Stock Exchange (NSE)
The successful anchor book building and the upcoming IPO mark a significant step for JSW Cement as it transitions into a publicly traded company. Investors and market watchers will be keenly observing the IPO's performance, given the company's position in the infrastructure sector and the current market sentiment towards new listings.
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