The initial public offering of JSW Cement Ltd, which is part of the diversified JSW Group, achieved a subscription rate of 29 percent on the first day of bidding, which took place on Thursday. On the first day, the initial share sale received bids for 5,21,07,720 shares, compared to the 18,12,94,964 shares available, according to data from the NSE.
The Retail Individual Investors (RIIs) category saw a subscription rate of 36 percent, while the Qualified Institutional Buyers (QIBs) segment attracted a subscription of 23 percent. The non-institutional investors’ portion was covered at a rate of 20 percent. On Wednesday, JSW Cement raised Rs 1,080 crore from anchor investors.
The company has established a price range of Rs 139-147 per share, which values the 17-year-old firm at Rs 20,000 crore at the upper limit of the price band. The IPO, which consists of a fresh issue of Rs 1,600 crore in shares and Rs 2,000 crore in shares to be sold by existing shareholders through an Offer-For-Sale (OFS), is set to conclude on August 11.
As part of the OFS, private equity firm Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, along with Synergy Metals Investments Holding Ltd and the State Bank of India (SBI), will be selling shares.
Synergy Metals Investments Holding is a subsidiary of Synergy Metals and Mining Fund, a private equity fund established in 2015 by Sudhir Maheshwari, a former executive of steelmaker ArcelorMittal. According to the draft documents, the company plans to use Rs 800 crore of the proceeds to partially finance a new integrated cement facility in Nagaur, Rajasthan, and Rs 520 crore for debt repayment, with the remaining funds allocated for general corporate purposes.
The book-running lead managers for the offer include JM Financial Ltd, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company, and SBI Capital Markets.
