JSW Cement, the cement
division of the $13 billion JSW Group, has signed definitive agreements with
Apollo Global Management Inc. (via its managed funds) and Synergy Metals
Investments Holding to raise up to Rs. 1,500 crore.
According to the
official release, the transaction is a structured private equity deal in which
investors are issued compulsorily convertible preference shares (CCPS), and the
conversion of such CCPS into common equity of the company's future performance
and valuation will be evaluated at the time of the initial public offering.
JSW Cement will be
able to expand its capacity from 14 MTPA to 25 MTPA due to this investment.
Investment Holding Ltd received approval from India's Competition Commission.
According to the release, Apollo's deal is subject to usual closing conditions,
including regulatory approval.
“JSW Cement is one of
the fastest growing cement companies in India and the largest green cement
company,” said Parth Jindal, Managing Director of JSW Cement. We have raised
our capacity from 6MTPA to 14MTPA in just three years and are now trying to
reach the 25MTPA milestone in the next 24 months.
Synergy and Apollo are
two of the world's most powerful investors, and it is evident that JSW Cement
is excited to work with them in the next chapter of their expansion. They seem
to be thrilled to have them on board at this important juncture in the quest to
become one of India's top five cement businesses.
Apart from providing
strategic resources to fund our expansion, Apollo and Synergy's contributions
provide profound validation and trust in our brand. I'd like to take this
occasion to extend a warm welcome to both investors, and I look forward to a
long and profitable partnership. JSW Cement's unique focus on green building
materials drew us in right away. We are excited to work with Parth Jindal, a
vibrant and ambitious young Indian business leader, and JSW Cement's highly
skilled management team to establish a world-class organization.
We are delighted to
support JSW Cement's expansion goals, as it is one of India's fastest-growing
cement firms with a strong long-term growth strategy. We
are overjoyed because this is our Hybrid Value Fund's first investment in
India, and it allows us to strengthen our relationship with the JSW Group.
For JSW Cement, Citigroup Global Markets India Private Limited served as
the exclusive placement agent. Khaitan & Co. is advising JSW Cement and its