JSW Cement DRHP Analysis - Leadership In The Fast-Growing GGBS Boosts Outlook: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Offer Details JSW Cement Ltd. plans to raise Rs 40 billion of which Rs 20 billion is via fresh issue and Rs 20 billion via offer for sale. Investor selling shareholders-iAP Asia Opportunistic Holdings (Rs 9.37 billion),Synergy Metal Investments Holdings (Rs 9.37 billion) and State Bank of India (Rs 1.25 billion). .Objects of the Offer Net Proceeds of the Fresh Issue are proposed to be utilized for:Part financing the cost of establishing a new integrated cement unit at Nagaur, Rajasthan (Amount: Rs 8 billion),Prepayment/repayment, in-full/in-part, of all or a portion of certain outstanding borrowing (Amount: Rs 7.2 billion).and general corporate purposes..Investment rationale Strong track record of capacity and volume growth.Well established leadership in the ground granulated blast furnace slag segment..Strengthening operations:Strategically located plants.Cost Efficiency to drive margins further.Focus on expanding distribution network and brand building..Key risks High Dependency on suppliers.Substantial rise in global fuel prices.Weak realisations could hamper growth..JSW Cement is India’s largest manufacturer of ground granulated blast furnace slag with a market share of 82.7% as on FY24. It manufactures blended cement (42% of sales volume), OPC (16%) and GBBS (42%). With an installed grinding capacity of 20.6 million tonnes per annum, the company’s 53% capacity is in the South, 25% in East while rest is in western region. As of FY24, the company operated through seven plants in India, which comprises one integrated unit, one clinker unit and five grinding units. JSW Cement FZC also operates one clinker unit in the UAE that supplies clinker to the Dolvi grinding unit in western India and to third-party customers. The company is currently undertaking greenfield and brownfield expansion plans across India, including in the north and central regions, to increase the Installed Grinding Capacity to 40.85 mtpa, and create a pan-India footprint. Further, the company has limestone reserves of 1,098 metric million tonne..Click on the attachment to read the full report:.Cement Sector Check - Price Hikes Announced; Sustainability To Be Monitored: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JSW Cement DRHP Analysis - Leadership In The Fast-Growing GGBS Boosts Outlook: Systematix

The company plans to raise Rs 40 billion of which Rs 20 billion is via fresh issue and Rs 20 billion via offer for sale.

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JSW Cement DRHP Analysis - Leadership In The Fast-Growing GGBS Boosts Outlook: Systematix

The company plans to raise Rs 40 billion of which Rs 20 billion is via fresh issue and Rs 20 billion via offer for sale.

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