Private equity investors Apollo Global Management and Synergy Capital will trim their stakes in JSW Cement Ltd after the Indian company received regulatory approval to float its initial public offering following a four-month hold-up.
The Securities and Exchange Board of India issued its final observations, akin to its approval, on JSW Cement’s IPO proposal last week, according to a notice on the capital market regulator’s website.
The company, part of the billionaire Sajjan Jindal-led JSW Group, filed its draft IPO papers with SEBI in August last year but the regulator kept the issue on hold in September without specifying any reason.
The IPO is a mix of a fresh issue of shares of up to Rs 2,000 crore by JSW Cement and an offer for sale of up to Rs 2,000 crore by three shareholders—Apollo Global, Synergy and State Bank of India.
US-based Apollo and Dubai-headquartered Synergy, a PE fund set up by former ArcelorMittal executive Sudhir Maheshwari, plan to sell shares worth Rs 937.50 crore each. SBI, India’s biggest lender, intends to sell shares worth up to Rs 125 crore. Apollo and Synergy had invested Rs 750 crore each in JSW Cement in 2021 while SBI had put in Rs 100 crore.
JSW Cement previously said it may raise up to Rs 400 crore via a pre-IPO placement. If it does so, it will reduce the size of the fresh issue. The company plans to deploy Rs 800 crore from the fresh proceeds to part-finance the cost of establishing a new cement unit at Nagaur, Rajasthan. It also intends to use Rs 720 crore to repay debt.
JM Financial Ltd, Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, DAM Capital Advisors Ltd, Goldman Sachs (India) Securities Pvt Ltd, Jefferies India Pvt Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd are the book running lead managers.
