The State Bank of India (SBI) has acquired a minority stake in JSW Cement Limited, part of $13 billion JSW Group. The PSU Banking behemoth has invested Rs 100 crore in the company via compulsorily convertible preference shares (CCPS), a JSW Cement statement said on Tuesday.
''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'', it said.
This capital infusion will support JSW Cement's capacity expansion from the current 14 MTPA to 25 MTPA, the statement added. 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.
Managing Director of JSW Cement, Parth Jindal, said, "In a short span of three years, we have increased our capacity from 6 MTPA to 14 MTPA and are now working towards achieving the 25 MTPA milestone over the next 24 months."
Director Finance of JSW Cement, Narinder Singh Kahlon, said:''Financing our growth and expansion strategy with investment from a power banking partner such as SBI sets us up very well for our planned IPO in the next 12-18 months."
(With inputs from PTI)
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