Shiva Cement’s shares surged in trading today as its promoter company, JSW Cement, is preparing to file draft papers with SEBI to raise ₹4,000 crore through an initial public offering (IPO). This would be the first major IPO in the cement sector since Nuvoco Vistas’ ₹5,000 crore issue in August 2021.
JSW Cement, which acquired Shiva Cement in 2017, holds a 59% stake in the company and has infused funds into it. Shiva Cement supplies clinker to JSW Cement’s grinding units and aims to expand its presence in Odisha, West Bengal, Jharkhand, and Bihar.
Despite reporting a wider net loss of ₹21.65 crore in the June quarter, Shiva Cement’s shares rose on the news of the potential IPO. The company had recently raised ₹400 crore through a rights issue to repay borrowings.
The demand outlook for cement companies is positive, driven by government spending on infrastructure, rural development, and affordable housing. This has boosted shares of cement companies, including Shiva Cement, which is poised to benefit from its association with JSW Cement’s upcoming IPO.