The country’s largest public sector lender State Bank of India (SBI) has acquired a minority stake in JSW Cements by investing ₹100 crore via compulsorily convertible preference shares (CCPS), the company said.
“The conversion of such CCPS into the 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,” JSW Cements said.
“This capital infusion will support JSW Cement’s capacity expansion from current 14 mtpa to 25 mtpa,” the cement manufacturer added. “I take this opportunity to welcome SBI as a strategic investor at JSW Cements and look forward to a fruitful association with them,” said MD Parth Jindal.
Narinder Singh Kahlon, Director Finance, JSW Cement said, “Financing our growth and expansion strategy with investment from SBI sets us up very well for our planned IPO in the next 12-18 months.”