JSW Cement has received a blow from the Securities and Exchange Board of India (SEBI), as the regulator has postponed the Rs 4,000 crore initial public offering by the company. SEBI’s move has come in the backdrop of an old case pertaining to the promoter, Sajjan Jindal, according to a Moneycontrol report.
The market watchdog didn’t mention the reason for putting the IPO on hold. It listed the company under “draft offer document in relation to which issuance of observations kept in abeyance” in a recent update.
JSW Cement had filed for its draft red herring prospectus (DRHP) on August 20. Additionally, the company has proposed an IPO worth Rs 4,000 crore, which consists of a fresh issue of equity stocks worth Rs 2,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore.
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The company has planned to use the funds raised partly to finance the cost of establishing a new integrated cement unit at Nagpur, Rajasthan. Apart from this, the proceeds would have been utilised in making advance payments and repayments of certain liabilities of the company.
JM Financial, Axis Capital, Citigroup Global Markets India, DAM Capital Advisors, Goldman Sachs (India) Securities, Jefferies India, Kotak Mahindra Capital Company, and SBI Capital Markets will be managing the company’s IPO process.
