Share Market News / Keep your money ready! JSW Cement's IPO is coming,you will be able to invest from this day

JSW Cement will launch an IPO of Rs 3,600 crore on August 7, down from the earlier proposed Rs 4,000 crore. It will consist of a fresh issue of Rs 1,600 crore and an OFS of Rs 2,000 crore. The amount raised will be spent on the Nagaur plant, debt repayment and general purposes.

Share Market News: Sajjan Jindal-promoted JSW Group unit JSW Cement is set to launch an initial public offering (IPO) of Rs 3,600 crore on August 7. According to the latest red herring prospectus (RHP), the issue is lower than the earlier proposed size of Rs 4,000 crore. The IPO will open for public subscription on August 7 and close on August 11, while anchor investors will be able to bid on August 6.

IPO details

JSW Cement's IPO will be in two parts:

New equity share issue of Rs 1,600 crore: The company will use this amount for its business expansion and other purposes.

Offer for sale (OFS) of up to Rs 2,000 crore: This includes sale of its shares by investor shareholders.

Private equity giant Apollo Management will sell shares worth Rs 931.80 crore through its affiliate AP Asia Opportunistic Holdings Pvt Ltd.

Synergy Metals Investments Holding Ltd will sell shares worth Rs 938.50 crore.

State Bank of India (SBI) will divest shares worth Rs 129.70 crore.

Use of funds raised

According to the draft documents, the amount raised from the new issue will be used for the following purposes:
Rs 800 crore: For partial financing of a new integrated cement unit at Nagaur in Rajasthan.
Rs 520 crore: For prepayment or repayment of outstanding loans.
Remaining amount: For general corporate purposes.

Change from earlier plan

Mumbai-based JSW Cement had initially planned to raise Rs 4,000 crore. However, according to the latest documents, the size of the new issue has been cut by Rs 400 crore. This change reflects an adjustment in the company's strategy, aimed at raising capital in line with market conditions and investor sentiment.

NSDL IPO gets great response

Looking at the recent market trends, the IPO of National Securities Depository Limited (NSDL) has received a tremendous response from investors. On the last day of bidding on Friday, NSDL's Rs 4,011 crore IPO received 41.01 times subscription. According to NSE data, bids were received for 1,44,03,92,004 shares against 3,51,27,002 shares.