JSW Cement to Raise Rs 1500 Crore from Apollo Global Management, Synergy Metals
JSW Cement, a part of the USD 13 billion JSW Group, announced on Wednesday a deal to boost Rs 1500 Crore from global private equity investors: Apollo Global Management Inc and Synergy Metals Investments Holding. A joint statement said the company will issue convertible preference shares (CCPS) to two global equity investors to increase the amount, helping it drive the next phase of growth.
"The transaction may be a structured private equity transaction during which CCPS is issued to investors and therefore the conversion of those CCPS into common stock of the corporate are going to be linked to the future performance of the company and its valuation will be determined at the time of the Initial public offering, "the statement said.
He added that this investment will help JSW Cement accelerate the expansion of its capacity from 14 million tons per year (Mtpa) to 25 million tons per year.
CCI, the fair trade regulator, earlier this month gave its approval to Synergy Metals Investments Holding to acquire a stake in JSW Cement, led by Sajjan Jindal. The Apollo deal is subject to customary closing conditions, including regulatory approval.
Commenting on the development, JSW Cement director Parth Jindal said: "Synergy and Apollo are among the strongest investors globally and JSW Cement is delighted to partner with them in the next phase of our growth. This is a critical time for the company in our "We strive to be among the top 5 cement companies in India and we are delighted that they are joining us."
Synergy Metals Investments Holding Founder and Managing Partner Sudhir Maheshwari said: "We are excited to possess this partnership with JSW Cement to assist drive their growth plans. India presents the most exciting infrastructure and construction story in the world."
Synergy Metals and Mining Fund is that the parent entity of Synergy Metals Investments Holding, a specialized private equity fund that invests within the industrial, metals and energy sectors globally. Apollo Global Management is a world leader in alternative asset management.
Utsav Baijal, Senior Partner and Head of Indian Private Equity at Apollo Global Management, said: “We are pleased to support the expansion plans of JSW Cement, which is one among the fastest growing cement companies in India and well-positioned for long term growth.”
JSW Cement has set an ambitious decide to expand its total cement capacity to 25 million tons per annum by 2023 with a capital of Rs 3,600 crore.
Its current capacity is 14 million tons per annum.
It has factories in Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Dolvi in Maharashtra, Shiva Works in Odisha and Salboni in West Bengal.
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