Synergy Fund, Apollo Global to invest Rs 1,500 cr in JSW Cement
Cement

Synergy Fund, Apollo Global to invest Rs 1,500 cr in JSW Cement

Apollo Global Management is multiplying down on Sajjan Jindal led JSW Group by joining Synergy Metals Investments for a Rs 1,500 crore capital increase in the conglomerate’s cement business, which is run by his son Parth, to finance its development plans to become 25 million tonnes scaled operations.

The capital increase corresponds with an uptick in demand from real estate and construction after lockdown, which resulted in most cement stocks outperforming the Nifty over the previous month and the last year.

Led by Sudhir Maheshwari, a long time ArcelorMittal executive, Dubai-based Synergy Fund has already desired clearance from the Competition Commission of India for obtaining an equity stake in JSW Cement and got its clearance on July 15th under the green channel route. Apollo is anticipated to sign its final agreement this coming week.

JSW Cement is going to issue Compulsorily Convertible Preference Shares (CCPS) to the two investors, each of them putting in Rs 750 crore at a post-money valuation of around Rs 8,500 to Rs 8,750 crore.

The CCPS have a five-year maturity, or they can be converted into equity shares prior to the company’s planned listing, scheduled in the following 18-24 months.

The investors can own up to 19% of the company upon conversion, and each of them also gets a board seat.

The Jindal family entirely owns JSW Cement. The investments are looked at as the precursor to the company’s initial public listing, which was originally planned for the previous year but got postponed because of the pandemic to the second half of 2022.

Managing Director of JSW Cement, Parth Jindal, told the media in an earlier interaction that the JSW Group was seeking growth equity from external sources to fund its latest round of expansions before the two businesses go public and that the development plans were to be equally financed by a combination of debt and internal growth of Rs 2,000 crore and Rs 1,500 crore of private equity investments.

Image Source


Also read: CCI approves stake acquisition in JSW Cement by Synergy Metals

Apollo Global Management is multiplying down on Sajjan Jindal led JSW Group by joining Synergy Metals Investments for a Rs 1,500 crore capital increase in the conglomerate’s cement business, which is run by his son Parth, to finance its development plans to become 25 million tonnes scaled operations. The capital increase corresponds with an uptick in demand from real estate and construction after lockdown, which resulted in most cement stocks outperforming the Nifty over the previous month and the last year. Led by Sudhir Maheshwari, a long time ArcelorMittal executive, Dubai-based Synergy Fund has already desired clearance from the Competition Commission of India for obtaining an equity stake in JSW Cement and got its clearance on July 15th under the green channel route. Apollo is anticipated to sign its final agreement this coming week. JSW Cement is going to issue Compulsorily Convertible Preference Shares (CCPS) to the two investors, each of them putting in Rs 750 crore at a post-money valuation of around Rs 8,500 to Rs 8,750 crore. The CCPS have a five-year maturity, or they can be converted into equity shares prior to the company’s planned listing, scheduled in the following 18-24 months. The investors can own up to 19% of the company upon conversion, and each of them also gets a board seat. The Jindal family entirely owns JSW Cement. The investments are looked at as the precursor to the company’s initial public listing, which was originally planned for the previous year but got postponed because of the pandemic to the second half of 2022. Managing Director of JSW Cement, Parth Jindal, told the media in an earlier interaction that the JSW Group was seeking growth equity from external sources to fund its latest round of expansions before the two businesses go public and that the development plans were to be equally financed by a combination of debt and internal growth of Rs 2,000 crore and Rs 1,500 crore of private equity investments. Image Source Also read: CCI approves stake acquisition in JSW Cement by Synergy Metals

Next Story
Infrastructure Energy

Greaves Electric Mobility Files for IPO

Electric-vehicle manufacturer Greaves Electric Mobility has announced plans to raise Rs 10 billion through an initial public offering (IPO), as stated in its draft papers filed. The company, recognised for its 'Ampere' brand of electric scooters, also produces three-wheelers under a separate brand. Greaves Electric’s major shareholders, Greaves Cotton—a publicly listed entity—and investment firm Abdul Latif Jameel Green Mobility Solutions, will collectively sell approximately 189.4 million shares through the IPO. This move positions Greaves Electric alongside larger competitor Ather En..

Next Story
Infrastructure Energy

IREDA Approves Rs 30 Billion for Odisha's Renewable Energy Projects

Indian Renewable Energy Development Agency (IREDA) has approved funding exceeding Rs 30 billion for renewable energy projects in Odisha as the state strives to achieve its goal of 10 GW capacity by 2030. Pradip Kumar Das, Chairman and Managing Director of IREDA, shared this update during the Odisha Solar Investor Conclave organised by GRIDCO. He emphasised that accessible financing is crucial to fostering the adoption of renewable energy. Das outlined IREDA's significant contributions to funding renewable energy projects in Odisha, spanning sectors such as solar, hydro, ethanol, and renewable..

Next Story
Infrastructure Energy

Oil Prices Rise Amid Light Pre-Christmas Trading

Oil prices edged higher during light trading ahead of the Christmas Day holiday. The increase was attributed to positive US economic data and growing oil demand in India, the third-largest importer of oil globally. Brent crude futures rose by 33 cents, or 0.45 per cent, to reach $72.95 per barrel, while US West Texas Intermediate (WTI) crude futures gained 29 cents, or 0.42 per cent, settling at $69.53 per barrel as of 0114 GMT. Economic indicators in the United States highlighted a surge in new orders for key manufactured capital goods in November, driven by robust demand for machinery. Add..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000