State Bank of India has invested Rs 100 crore through compulsorily convertible preference shares to acquire minority stake in JSW Cement.

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, said JSW Cement in a statement on Tuesday.

This capital infusion will support JSW Cement’s capacity expansion from the current 14 mtpa to 25 mtpa.

SBI’s 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 and Synergy Metals Investments Holding -- this year.

Parth Jindal, Managing Director of JSW Cement, said the company has increased its capacity from 6 mtpa to 14 mtpa in the last three years, and now plans to achieve 25 mtpa over the next 24 months.

Narinder Singh Kahlon, Director Finance, JSW Cement, said financing the expansion with investment from a power banking partner such as SBI bodes well for the planned IPO in the next 12-18 months.