Sebi puts on hold JSW Cement's Rs 4,000 crore IPO, approves three other issues

Capital markets regulator Sebi has put on hold the initial public offer (IPO) of JSW Cement. The company had filed its draft prospectus in August this year to go public. The details about why the IPO has been kept in abeyance were not provided.

JSW Cement, part of Sajjan Jindal's JSW Group, sought to raise around Rs 4,000 crore through the IPO, which included a fresh equity sale and an offer for sale (OFS) component.

The net proceeds from the public offer are supposed to be used for partly financing the proposed cement unit in Nagaur, repayment of debt and other general corporate purposes.


JSW Cement is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement and portland composite cement and ground granulated blast furnace slag (“GGBS”).

It also manufactures ordinary portland cement, clinker and a range of allied cementitious products such as ready-mix concrete (“RMC”), screened slag, construction chemicals and waterproofing compounds.

Also Read: Ashish Kacholia opposes heavy-handed SME IPO crackdown: 'Don’t punish the whole market for a few bad apples'

Meanwhile, Sebi has approved IPOs of three other companies including SK Finance, Belstar Microfinance and Transrail Lighting.

Vehicle Financier SK Finance is planning to raise about Rs 2,200 crore through the public offer, which includes a fresh equity sale of Rs 500 crore and an OFS of Rs 1700 crore.

The company proposes to utilise the net proceeds from the fresh issue towards augmenting the capital base to meet future business requirements of the company towards onward lending and general corporate purposes.

Muthoot Finance's arm Belstar's IPO is a combination of fresh issue of equity shares worth Rs 1,000 crore and an OFS of Rs 300 crore by investor shareholders.

Proceeds from the fresh issue worth Rs 760 crore will be used to meet future capital requirements towards onward lending and the remaining amount will be used for general corporate purposes.

Transrail Lighting's initial share sale, meanwhile, is a combination of a fresh equity issue worth Rs 450 crore and an OFS of over 1 crore shares.