JSW Cement, part of the USD 13 billion JSW Group, on Wednesday announced a deal to raise Rs 1,500 crore from two global private equity investors – Apollo Global Management Inc and Synergy Metals Investments Holding. The company will issue convertible preference shares (CCPS) to the two global equity investors to raise the amount, which will help it drive the next phase of growth, a joint statement said.
“The transaction is a structured private equity deal wherein 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,” the statement said.
This investment will help JSW Cement accelerate its capacity expansion from the current 14 MTPA (Millon Tonnes per annum) to 25 MTPA, it added.
Fair trade regulator CCI had earlier this month granted its nod to Synergy Metals Investments Holding Holding to acquire a stake in Sajjan Jindal-led JSW Cement. Apollo’s transaction is subject to customary closing conditions, including regulatory approval.
Commenting on the development, JSW Cement Managing Director Parth Jindal said, “Synergy and Apollo are amongst the strongest investors globally and JSW Cement is pleased to partner with them in the next phase of our growth. 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.”
Synergy Metals Investments Holding Founder and Managing Partner Sudhir Maheshwari said, “We are excited to forge this partnership with JSW Cement to help propel its growth plans. India presents the most exciting construction and infrastructure story globally.”
Synergy Metals and Mining Fund is the parent entity of Synergy Metals Investments Holding, a specialised private equity fund investing in the industrial, metals and power sectors globally. Apollo Global Management is a leading global alternative asset manager.
Utsav Baijal, Senior Partner and Head of India Private Equity at Apollo Global Management said, “We are thrilled to support JSW Cement’s expansion plans, which is one of the fastest-growing cement companies in India and is well-positioned for long-term growth.”
JSW Cement has drawn an ambitious plan to expand its combined cement capacity to 25 million tonnes per annum by 2023 at a capex of Rs 3,600 crore.
Its current capacity is 14 million tons per annum.
It has plants at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Dolvi in Maharashtra, Shiva Works in Odisha and Salboni in West Bengal.