SBI acquires minority stake in JSW Cement

SBI acquires minority stake in JSW Cement

State Bank of India (SBI) has acquired a minority stake in JSW Cement Limited, part of USD 13 billion JSW Group.
The PSU Banking behemoth has invested Rs 100 crore in the company via compulsorily convertible preference shares (CCPS).
The conversion of such CCPS into 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.
This capital infusion will support JSW Cement’s capacity expansion from current 14 MTPA to 25 MTPA.
The SBI transaction with JSW Cement comes close on the heels of the Rs 1,500 crore investments made by two global private equity investors, Apollo Global Management Inc. (through its investment entity in Singapore) and Synergy Metals Investments Holding Ltd earlier this year.

In a short span of three years, JSW Cement has increased its capacity from 6 MTPA to 14 MTPA and are now working towards achieving the 25 MTPA milestone over the next 24 months.

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