JSW Cement listing by Dec 2022 likely

Kolkata: JSW Cement has again pushed back its plans for an initial public offering by two years to around December 2022 due to slowdown and Covid-19 disruptions, a top company official said on Wednesday. The company has already drawn an ambitious plan to expand its combined cement capacity to 25 million tonne by 2023 from 14 million tonne at a Capex of Rs 3,600 crore.

"In 2019, the sector had degrowth, in 2020 Covid hit us. Now December 2022 is a logical timeline for us for the IPO," JSW Cement managing director Parth Jindal said at a virtual briefing to announce the expansion of Shiva Cement, in Odisha. The group earlier targeted a December 2020 listing. The IPO size could be at the range of Rs 2,500-2,700 crore diluting 10 per cent stake in the company.

The company, part of the $14 billion JSW Steel Group to bridge the funding gap till the IPO was in process of raising Rs 1,000-1,500 crore roping in private equity route by this fiscal. "Citi Bank had been roped in for the fundraise and the process is expected to be completed by this fiscal," Jindal said.

The current cement company's debt is at Rs 2,800 crore and the group is attempting not to exceed Rs 3,500 crore by generating healthy internal accruals to fund the fresh capex cycle of Rs 3,600 crore. Eastern region states Odisha and West Bengal had been in focus for JSW Cement as manufacturing sites to feed the region including Bihar and Jharkhand. The group after taking over controlling interest in Odisha-based Shiva Cement announced to invest over Rs 1,500 crore in a 1.36 million tonne clinker unit project.

The project also includes setting up of a 1 MTPA grinding unit, 8 MW Waste heat recovery power plant, 4 MTPA crushing plants at its dolomite and limestone mines, along with requisite connectivity infrastructure. The Odisha project will be funded by a debt equity of 75:25 and to raise equity the company will go for preferential issue of Rs 150 crore and rights offer for the listed entity.