Sajjan Jindal, Chairman of JSW Group, revealed that the company is targeting an Initial Public Offering (IPO) for its cement division by January 2025. During an exclusive conversation with CNBC-TV18, Jindal outlined the company’s roadmap for the cement IPO, its strategic expansions, and ventures in the steel and electric vehicle (EV) sectors.

Reviving IPO Plans After Regulatory Hurdles

JSW Cement’s IPO journey has been a rollercoaster. The company initially filed its draft papers in August 2024, aiming to raise Rs 4,000 crore through a mix of fresh equity and an offer for sale. The funds were earmarked for expanding its Nagaur cement unit in Rajasthan and reducing its debt burden.

However, the Securities and Exchange Board of India (SEBI) put the IPO on hold in September 2024, citing an investigation into an old case involving inter-se transfer of investments by Hexa Securities and Finance Co., a firm linked to Jindal and his family. This regulatory roadblock delayed the much-anticipated listing. Despite the setback, Jindal affirmed on Wednesday that the company is now focused on launching the IPO by early 2025.

Steel and EV Ventures

Beyond the cement sector, JSW Group is eyeing opportunities in the Indian steel industry. Jindal expressed interest in acquiring stakes in state-owned NMDC and Rashtriya Ispat Nigam Limited (RINL) when the government opens them for privatization.

On the EV front, Jindal shared ambitious plans to make a mark in the four-wheeler space. He dismissed any intentions of entering the two-wheeler market but emphasized the need for innovation in India’s automobile industry. “India desperately needs new energy vehicles and aggressive players to accelerate the industry’s growth,” he said. He also projected that by 2030, India will produce 6-7 million cars annually, with at least a million under the JSW umbrella. The company is actively engaging in technology transfer discussions with global players while conducting in-house R&D to develop cutting-edge EV technology.

Turning to the energy sector, Jindal provided updates on JSW Energy’s bid for KSK Mahanadi Power. The acquisition is awaiting final approval from the Committee of Creditors (CoC). “If all goes well, the deal could close within 3-4 months. However, litigation could extend the timeline,” he stated.

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On the Bhushan Power merger, which has faced delays, Jindal expressed optimism about a resolution, indicating that a Supreme Court decision could be expected soon.

As JSW Cement prepares for its IPO, the group’s investments and innovations across cement, steel, energy, and EV sectors underline its focus on growth and diversification. The January 2025 target for the cement IPO reflects renewed confidence, even as regulatory and market challenges persist.

*Inputs from CNBC-TV18*

Story first published: Thursday, November 21, 2024, 12:02 [IST]