Sebi Halts JSW Cement’s Rs 4,000 Cr IPO

The Securities and Exchange Board of India (Sebi) has put a temporary halt on the much-anticipated initial public offering (IPO) of JSW Cement, part of the Sajjan Jindal-led JSW Group. 

The cement company had filed its draft prospectus in August 2024 and was aiming to raise approximately Rs 4,000 crore through the IPO, which included both a fresh equity issuance and an offer for sale (OFS) from existing shareholders. However, Sebi has not disclosed the reasons for placing the IPO in abeyance, leaving the market speculating about the regulatory concerns.

JSW Cement had planned to utilise the net proceeds from the IPO to partially finance the establishment of a new cement unit in Nagaur, Rajasthan, as well as to repay existing debt and fund other general corporate needs. 

The company is known for producing environmentally friendly cement products, including blended cement, Portland composite cement, and ground granulated blast furnace slag (GGBS). It also manufactures ordinary Portland cement, clinker, and a variety of related products such as ready-mix concrete (RMC), screened slag, construction chemicals and waterproofing compounds.

While JSW Cement’s IPO has been stalled, Sebi has moved forward with the approval of three other public offerings. Vehicle financier SK Finance received the green light to raise Rs 2,200 crore, which includes a fresh equity issue of Rs 500 crore and an OFS worth Rs 1,700 crore. The funds from the fresh issue will be directed toward enhancing the company’s capital base to support its lending operations and cover general corporate expenses.

Similarly, Belstar Microfinance, a subsidiary of Muthoot Finance, has secured approval for its Rs 1,300 crore IPO, which comprises a fresh issue of Rs 1,000 crore and an OFS of Rs 300 crore. A sizable portion of the fresh issue proceeds, amounting to Rs 760 crore, will be allocated to meet the company’s future capital requirements for onward lending, with the remaining funds earmarked for corporate purposes.