The State Bank of India (SBI) has acquired a minority stake in JSW Cement by investing Rs 100 crore in the cement manufacturer via a compulsorily convertible preference shares (CCPS).
"The conversion of such CCPS into common equity of the company will be linked to the company's future business performance and valuation determined at the time of the proposed initial public offering," the cement producer said.
Accordingly, this capital infusion will support JSW Cement's expansion from the current 14 metric tonne per annum to 25 metric tonne per annum, it said. Notably, the SBI's transaction with JSW Cement comes close on the heels of the Rs 1,500 crore investments made by two global private equity investors -- Apollo Global Management and Synergy Metals Investments -- earlier this year.
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According to Narinder Singh Kahlon, Director Finance at JSW Cement: "Financing our growth and expansion strategy with investment from a power banking partner such as SBI sets us up very well for our planned IPO in the next 12-18 months." "We look forward to a long-term association with SBI as we work towards building a 'New India' by offering world-class environment-friendly cement products."
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