JSW Cement will raise ₹1,500 crore from two global private equity investors, Apollo Global Management Inc. and Synergy Metals Investments Holding.
The transaction is a structured private equity deal wherein compulsorily convertible preference shares (CCPS) are being issued to the investors and the conversion of such CCPS into common equity of the company will be linked to the company’s future performance and valuation determined at the time of the initial public offering.
Capacity expansion
This investment will help JSW Cement accelerate its capacity expansion from the current 14 MTPA to 25 MTPA.
The Competition Commission of India has recently approved the transaction by Synergy Metals Investment Holding. Apollo’s transaction is subject to customary closing conditions including regulatory approval.
Parth Jindal, Managing Director of JSW Cement, said, “This is a critical time for the company in our quest to be amongst the top 5 cement companies in India and we are delighted to have them on board. Apart from strategic capital to finance our growth, investments by Apollo and Synergy bring with them deep validation and trust in our brand.”
Nilesh Narwekar, Chief Executive Officer of JSW Cement said, “We will utilise these funds to grow both organically and inorganically. We plan to enter key new geographies and expand our share in our existing markets. With new initiatives across our plants and functions, we are prepared to continue to build and play a significant role in the core infrastructure growth of the country.”