State Bank of India (SBI) has bagged a minority stake in JSW Cement Limited, worthing Rs 100 crore through compulsorily convertible preference shares (CCPS).

The capital infusion will help JSW Cement increase its capacity from 14 million tonnes per annum (mtpa) to 25 mtpa.

Managing Director of JSW Cement, Parth Jindal, said that the company increased its capacity from 6 mtpa to 14 mtpa in three years and expects to increase to 25 mtpa in the next two years.

The conversion of CCPS into common equity would be joined to the company's future business performance and valuation at the time of the proposed initial public offering (IPO).

Director Finance of JSW, Narinder Singh Kahlon, told the media that financing the company's growth with investment from SBI increased the company's position in the planned IPO in the next 12-18 months.

Previously, SBI's transaction with JSW Cement came close to a Rs 1,500 crore investment by Apollo Global Management Inc and Synergy Metals Investments Holding.

JSW Cement has manufacturing units of the capacity of 14 mtpa at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in Maharashtra.

Currently, Shiva Cement Limited is investing over Rs 1,500 crore in a clinker project of 1.36 mtpa in Odisha. The scope of work includes setting up a one mtpa grinding unit and associated facilities.

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