JSW Cement To Raise Rs 1,500-1,800 Crore from PE Funds
JSW Group scion Parth Jindal-led JSW Cement, the cement subsidiary of the $12-billion diversified conglomerate, which deferred its initial public offering plans, is looking to raise Rs 1,500-1,800 crore for growth capital. It plans to strengthen its position in the domestic market and is open to dilute a minority stake as part of the proposed deal and has mandated investment bank Citi to scout for potential investors
Recently the industry has witnessed a lot of private equity liquidity chasing transactions. JSW Cement has made its intent clear and is aggressively looking to consolidate. It goes to see if this will be a pure equity deal or a hybrid, structured transaction.
JSW Cement has an overall capacity of around 14 mpta, and its key markets are in South and East India. It has five facilities in Nandyal (Andhra Pradesh), Vijaynagar (Karnataka) , Salboni (West Bengal), Jajpur (Odisha) and Dolvi (Maharashtra). The company, a relatively new player in the sector, was incorporated in 2009 and offers three products: Portland slag cement, ordinary Portland cement, and ground-granulated blast-furnace slag.