Latest news with #ParthJindal
Time of India
4 days ago
- Business
- Time of India
JSW Cement to triple capacity to 60 million tonnes a year
NEW DELHI: JSW Cement, whose Rs 3,600-crore IPO has opened for public subscription on Thursday, plans to triple manufacturing capacity to 60 million tonnes per annum in the coming years, and the USD 23-billion JSW group firm may tap capital markets to fund its growth, said Managing Director Parth Jindal on Thursday. JSW Cement plans to grow its capacity organically. However, it may keep looking for acquisition opportunities. The initial public offering (IPO) of JSW Cement Ltd received 29 per cent subscription on the first day of bidding on Thursday. The issue will conclude on August 11. The company, which has put a price band of Rs 139-Rs 147 apiece for its IPO, expects to become among top-five players, helped by expansion after listing. "We had reached a critical size of 20 million tonnes, which put us in the top ten in the Indian cement industry with a very clear roadmap to come into the top five, so we felt that this is the right time to tap the capital market and go for the IPO," said Jindal. The company, which currently has the capacity for 20 MTPA (million tonnes per annum), has sufficient "mines, assets and land" to get 60 MTPA "as soon as possible", he said at a media round-table here. When asked about the funding, Jindal said: "In terms of stake sale, at some point in time we would tap the capital markets either through a QIP or through a follow-on offering if we require funds to expand faster. As of now, JSW Cement's internal accruals will be "sufficient to get to 42 MTPA" and even for 60 MTPA, said Jindal. "... but if required, we can always do a QIP and dilute some stake in order to raise the funds. We are also keeping that window open, if any good acquisition comes up, then again we could dilute some stake and look for the acquisition of any asset," said Jindal. Jindal expects the Indian cement industry to grow 6-7 per cent in the current fiscal, helped by factors such as the government's increased spending on infrastructure. The company said the June quarter of FY26 was impacted due to unseasonal rains, early arrival of monsoon and geopolitical disturbances. "I think Q2 has been very positive so far because monsoons came a little bit early in Q1," he said, adding, "the industry grew at about 4 per cent pan-India in Q1, I expect Q2 to be better, and I think the target of being 6.5 per cent to 7 per cent for the year is ... definitely we are on track for that as an industry." When asked about margins in the cement industry, Jindal said the company is working on it by reducing the logistics costs. "We are fortunate to have access to the rail and port infrastructure of the JSW group. Hence, our logistics cost is materially lower than the competition," he said. Besides, the company has now started deploying electric trucks as well as LNG trucks on some of our routes. About sales realisation of the industry, which was under pressure from last two years due to intense competition and consolidation happening in the cement industry, Jindal said: "In terms of realisation, the lows of FY25 are behind us, cement prices have recovered to a great extent, and you could see a much improved performance in Q1 by all the leading players." About the consolidation happening in the cement industry, Jindal said JSW is also "constantly evaluating all acquisition opportunities. We are not against acquiring". However, he also added the price of acquisitions has been set at a very high level. Because of the transactions that have taken place over the last two years, building capacity organically for JSW is much cheaper and more value-accretive than acquiring. JSW Cement, had on Wednesday mobilised Rs 1,080 crore from anchor investors. This anchor portion witnessed participation from domestic and foreign institutional investors including Nomura, Government of Singapore, Abu Dhabi Investment Authority , Morgan Stanley Investment Fund , Goldman Sachs (Singapore) Pte and Kuwait Investment Authority, according to a circular uploaded on BSE's website. Also, SBI Mutual Fund (MF), Nippon India MF, Tata MF, Aditya Birla Sun Life MF, Motilal Oswal MF and SBI Life Insurance Company are among investors. As per the circular, JSW Cement has allotted 7,34,69,386 equity shares to 52 funds at Rs 147 apiece. This aggregates the transaction size to Rs 1,080 crore. The company has set a price band of Rs 139-147 per share, valuing the 17-year-old company at Rs 20,000 crore at the upper end of the price band. The IPO includes a fresh issue of Rs 1,600 crore of shares and Rs 2,000 crore of shares to be sold by current shareholders through Offer for Sale. As part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, as well as Synergy Metals Investments Holding Ltd and State Bank of India (SBI) will offload shares.
New Indian Express
4 days ago
- Business
- New Indian Express
India needs 10 EPCs of L&T's size, says Parth Jindal
India's infrastructure growth ambitions could be held back by a limited pool of large-scale engineering, procurement and construction (EPC) contractors and outdated construction methods, warns Parth Jindal, managing director, JSW Cement. In a recent interaction, Jindal said that while the Indian economy has the potential to grow faster than 7%, one of the major stumbling blocks is the lack of sufficient high-quality EPC players. 'Whenever we try to build a factory, my team always comes back and says, there's only L&T,' Jindal said, stressing the urgent need for at least 10 to 20 L&T-like firms to support India's infrastructure and industrial ambitions. Jindal pointed out that while companies like Tata Projects, KEC International, and J Kumar Infra are stepping up, the broader industry still relies heavily on manual labour. 'We are still pouring cement and bending TMT bars manually,' he noted, adding that a shift to mechanised civil work, akin to practices in China and other advanced economies, is essential for speeding up project execution. 'Today, it takes longer in India to build a road or a building compared to China,' he said. 'It is improving, but it can be much faster.' Jindal blamed lack of large EPCs to sales realization in the cement sector. He said that sales realisations in cement have declined for the past two years. The 10-year CAGR in cement prices in India is less than 1%, which he says, is a serious concern. 'Despite cost-saving measures, the benefits have been passed on to customers, and EBITDA margins remain stagnant compared to a decade ago,' says the MD of JSW Cement, whose initial public offer opened for subscription on Thursday. The IPO, which is priced at Rs 139-147, got subscribed 29% on the first day. The retail investors' portion got subscribed 36% on the first day. Meanwhile, Jindal says though there's no direct impact of the 50% US tariffs on Indian exports, the move has dented market sentiment. 'The impact will mostly be on gems and jewellery, textiles, toys and auto components,' he said. 'But sentiment matters.'
Time of India
5 days ago
- Business
- Time of India
JSW Cement to triple capacity to 60 million tonnes a year, aims to be among top-5 players
Synopsis JSW Cement's Rs 3,600-crore IPO has opened, with plans to triple manufacturing capacity to 60 MTPA. Managing Director Parth Jindal said the company may tap capital markets for funding. The IPO received 29% subscription on day one. JSW Cement aims to be among the top five players post-expansion, leveraging internal accruals and potential stake dilutions for faster growth and acquisitions.
Economic Times
5 days ago
- Business
- Economic Times
JSW Cement to triple capacity to 60 million tonnes a year, aims to be among top-5 players
JSW Cement, whose Rs 3,600-crore IPO has opened for public subscription on Thursday, plans to triple manufacturing capacity to 60 million tonnes per annum in the coming years, and the USD 23-billion JSW group firm may tap capital markets to fund its growth, said Managing Director Parth Jindal on Thursday. JSW Cement plans to grow its capacity organically. However, it may keep looking for acquisition opportunities. The initial public offering (IPO) of JSW Cement Ltd received 29 per cent subscription on the first day of bidding on Thursday. The issue will conclude on August 11. The company, which has put a price band of Rs 139-Rs 147 apiece for its IPO, expects to become among top-five players, helped by expansion after listing. "We had reached a critical size of 20 million tonnes, which put us in the top ten in the Indian cement industry with a very clear roadmap to come into the top five, so we felt that this is the right time to tap the capital market and go for the IPO," said Jindal. The company, which currently has the capacity for 20 MTPA (million tonnes per annum), has sufficient "mines, assets and land" to get 60 MTPA "as soon as possible", he said at a media round-table here. When asked about the funding, Jindal said: "In terms of stake sale, at some point in time we would tap the capital markets either through a QIP or through a follow-on offering if we require funds to expand faster. As of now, JSW Cement's internal accruals will be "sufficient to get to 42 MTPA" and even for 60 MTPA, said Jindal. "... but if required, we can always do a QIP and dilute some stake in order to raise the funds. We are also keeping that window open, if any good acquisition comes up, then again we could dilute some stake and look for the acquisition of any asset," said Jindal. Jindal expects the Indian cement industry to grow 6-7 per cent in the current fiscal, helped by factors such as the government's increased spending on infrastructure. The company said the June quarter of FY26 was impacted due to unseasonal rains, early arrival of monsoon and geopolitical disturbances. "I think Q2 has been very positive so far because monsoons came a little bit early in Q1," he said, adding, "the industry grew at about 4 per cent pan-India in Q1, I expect Q2 to be better, and I think the target of being 6.5 per cent to 7 per cent for the year is ... definitely we are on track for that as an industry." When asked about margins in the cement industry, Jindal said the company is working on it by reducing the logistics costs. "We are fortunate to have access to the rail and port infrastructure of the JSW group. Hence, our logistics cost is materially lower than the competition," he said. Besides, the company has now started deploying electric trucks as well as LNG trucks on some of our routes. About sales realisation of the industry, which was under pressure from last two years due to intense competition and consolidation happening in the cement industry, Jindal said: "In terms of realisation, the lows of FY25 are behind us, cement prices have recovered to a great extent, and you could see a much improved performance in Q1 by all the leading players." About the consolidation happening in the cement industry, Jindal said JSW is also "constantly evaluating all acquisition opportunities. We are not against acquiring". However, he also added the price of acquisitions has been set at a very high level. Because of the transactions that have taken place over the last two years, building capacity organically for JSW is much cheaper and more value-accretive than acquiring. JSW Cement, had on Wednesday mobilised Rs 1,080 crore from anchor investors. This anchor portion witnessed participation from domestic and foreign institutional investors including Nomura, Government of Singapore, Abu Dhabi Investment Authority, Morgan Stanley Investment Fund, Goldman Sachs (Singapore) Pte and Kuwait Investment Authority, according to a circular uploaded on BSE's website. Also, SBI Mutual Fund (MF), Nippon India MF, Tata MF, Aditya Birla Sun Life MF, Motilal Oswal MF and SBI Life Insurance Company are among investors. As per the circular, JSW Cement has allotted 7,34,69,386 equity shares to 52 funds at Rs 147 apiece. This aggregates the transaction size to Rs 1,080 crore. The company has set a price band of Rs 139-147 per share, valuing the 17-year-old company at Rs 20,000 crore at the upper end of the price band. The IPO includes a fresh issue of Rs 1,600 crore of shares and Rs 2,000 crore of shares to be sold by current shareholders through Offer for Sale. As part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, as well as Synergy Metals Investments Holding Ltd and State Bank of India (SBI) will offload shares.
Time of India
5 days ago
- Business
- Time of India
JSW Cement garners ₹1,080 crore from anchor investors ahead of IPO
NEW DELHI: JSW Cement , part of the diversified JSW Group , on Wednesday mobilised Rs 1,080 crore from anchor investors, a day before its initial share-sale opening for public subscription. This anchor portion witnessed participation from domestic and foreign institutional investors including Nomura , Government of Singapore, Abu Dhabi Investment Authority , Morgan Stanley Investment Fund, Goldman Sachs (Singapore) Pte and Kuwait Investment Authority, according to a circular uploaded on BSE's website. Also, SBI Mutual Fund (MF), Nippon India MF, Tata MF, Aditya Birla Sun Life MF, Motilal Oswal MF and SBI Life Insurance Company are among investors. As per the circular, JSW Cement has allotted 7,34,69,386 equity shares to 52 funds at Rs 147 apiece. This aggregates the transaction size to Rs 1,080 crore. The company has set a price band of Rs 139-147 per share, valuing the 17-year-old company at Rs 20,000 crore at the upper end of the price band. The IPO, which includes a fresh issue of Rs 1,600 crore of shares and Rs 2,000 crore of shares to be sold by current shareholders through Offer for Sale, will be open between August 7-11. As part of the OFS, private equity giant Apollo Management, through its affiliate AP Asia Opportunistic Holdings Pte Ltd, as well as Synergy Metals Investments Holding Ltd and State Bank of India (SBI) will offload shares. Synergy Metals Investments Holding is an arm of Synergy Metals and Mining Fund, a private equity fund set up by a former executive of steelmaker ArcelorMittal Sudhir Maheshwari in 2015. According to the draft papers, the company will utilise proceeds worth Rs 800 crore to part-finance a new integrated cement unit at Nagaur, Rajasthan, and Rs 520 crore for payment of debt and the remaining funds for general corporate purposes. As of March 31, 2025, JSW Cement's total borrowings stood at Rs 6,166.6 crore. The Mumbai-based company had earlier planned to raise Rs 4,000 crore. At the time of filing papers, JSW Cement said it intended to raise Rs 2,000 crore from a fresh issue of equity shares and an OFS of Rs 2,000 crore by investor shareholders. However, the size of the fresh capital-raising has been cut by Rs 400 crore from the fresh issue. When asked about the reasons for scaling down the IPO size from Rs 4,000 crore to Rs 3,600 crore, Parth Jindal, the managing director of JSW Cement, had stated it is led by business requirements in current times and also to make future dilutions possible. At the time of announcing the IPO, the cement industry's condition was not as good, necessitating a higher sum of money, he had added. On the financial front, the company's revenue from operations for FY25 stood at Rs 5,813.1 crore against Rs 6,028.10 crore in FY24, and Rs 5,836.72 crore in FY23. The company reported a loss of Rs 163.77 crore in FY25. Its profit was Rs 62 crore in FY24 and Rs 104 crore in FY23. As of March 31, 2025, JSW Cement had an installed grinding capacity of 20.60 million metric tonnes per annum (MMTPA).
