The shares of JSW Cement Limited on Tuesday jumped over 3 per cent after State Bank of India (SBI) has acquired a minority stake in JSW Cement Limited.
The shares of JSE Cement, part of the $13 billion JSW Group, opened at Rs 647.05 at 9:15 AM and it touched Rs 664.90 at 10:50 AM on Tuesday.
The PSU Banking behemoth has invested Rs 100 crore in the company via compulsorily convertible preference shares (CCPS), a JSW Cement statement said on Tuesday.
"The conversion of such CCPS into common equity of the company will be linked to the company's future business performance and valuation determined at the time of the proposed initial public offering", it said.
This capital infusion will support JSW Cement's capacity expansion from the current 14 MTPA to 25 MTPA, the statement added.
The SBI transaction with JSW Cement comes close on the heels of the Rs 1,500 crore investments made by two global private equity investors, Apollo Global Management Inc. (through its investment entity in Singapore) and Synergy Metals Investments Holding Ltd earlier this year.
Managing Director of JSW Cement, Parth Jindal, said: “In a short span of three years, we have increased our capacity from 6 MTPA to 14 MTPA and are now working towards achieving the 25 MTPA milestone over the next 24 months.”
Director Finance of JSW Cement, Narinder Singh Kahlon, said: "Financing our growth and expansion strategy with investment from a power banking partner such as SBI sets us up very well for our planned IPO in the next 12-18 months.”
Meanwhile, according to a report published by Outlook Money in April 2021, JSW Cement aims to be a leader in the Indian construction industry, paving the way with innovation and ultra-modern technology.
The company is India’s leading manufacturer of eco-friendly ‘Green Cement’, producing 14 MTPA (million tonnes per annum) of high-quality cement products. Its goal is to increase the capacity to 25 MTPA by 2022 with 7 state-of-the-art facilities located across India and beyond.