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Markets regulator SEBI has "kept in abeyance" the proposed initial public offering (IPO) of JSW Cement.
SEBI, in its latest processing status of draft offer documents, though did not specified any reason behind keeping the JSW Cement public issue on hold. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 require every issuer, being an unlisted company desirous of making an initial public offer and a listed company desirous of making a rights issue for a value exceeding Rs 50 crore or a public offer, to file a draft offer document with SEBI through a merchant banker(s). The merchant banker(s) subsequently correspond with SEBI on behalf of the issuer. The proposed IPO consists of a fresh issue of equity stocks worth Rs 2,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public for the first time. Offer for Sale means the promoters (owners) selling their shares to raise additional funds for the company. The net proceeds of the IPO are proposed to be utilized towards partly financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan; prepayment or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company; and other general corporate purposes, as per the draft red herring prospectus. Reportedly, the company filed the draft IPO papers with the regulator on August 16. JSW Cement is part of the diversified JSW Group (USD 24.25 billion by revenues in 2023-24). JSW Cement has manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra, and through its subsidiary, Shiva Cement, operates a clinker unit in Odisha. (ANI)
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