JSW Cement enters into contracts to raise up to ₹1,500 crore from Apollo Global and Synergy

Recently, Competition Commission of India (CCI) approved the transaction by Synergy while Apollo’s transaction was subject to customary closing conditions including regulatory approval.

According to Moneycontrol, JSW Cement, a subsidiary of Mumbai-based JSW Group, has entered into contracts to raise an amount of ₹1,500 crore from two global investment firms, namely Apollo Global Management Inc. and Synergy Metals Investments Holding.

On April 19, had reported about Apollo, Synergy as well as Advent International’s aim to acquire a minority stake in IPO-bound JSW Cement.

As per an official announcement, the transaction is a structured private equity deal where compulsorily convertible preference shares (CCPS) are being issued to the investors. CCPS’ conversion into common equity of the company will be associated with the company’s future performance along with the valuation determined at the time of Initial Public Offering (IPO). It will contribute towards JSW Cement expanding its capacity from current 14 MTPA to 25 MTPA (million tonnes per annum).

The Managing Director of JSW Cement, Parth Jindal stated, “Synergy and Apollo are amongst the strongest investors globally and JSW Cement is pleased to partner with them in the next phase of our growth.”

Sudhir Maheshwari, the Founder and Managing Partner of Synergy Metals Investments Holding Limited added, “We are looking forward to our collaboration with Parth Jindal, a dynamic and promising young business leader of India, and the highly professional management team of JSW Cement to build a world-class organization.”

The Senior Partner and Head of India Private Equity at Apollo, Utsav Baijal talked about the firm’s excitement to be a part of Hybrid Value Fund’s first investment in the country.

“We look forward to working closely with Parth Jindal and his talented team as they scale the business further”, he continued.

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