New Delhi: State Bank of India (SBI) has invested Rs 100 crore in JSW Cement to pick up a minority stake in one of the leading green cement companies in India. As part of the deal, JSW has issued undisclosed compulsorily convertible preference shares (CCPS) to SBI.
In a statement, JSW Cement said, "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.”
The company also added that the capital infusion will support JSW Cement’s expansion from the current 14 metric tonnes per annum to 25 metric tonnes per annum.
The investment by SBI has come after the Rs 1,500 crore investments made by two global private equity investors -- Apollo Global Management and Synergy Metals Investments. The two firms had invested earlier this year.
Director Finance at 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." Also Read: Mobile apps payments fraud case: Enforcement Directorate attaches funds worth over Rs 40 crore
"We look forward to a long-term association with SBI as we work towards building a `New India` by offering world-class environment-friendly cement products. Also Read: Finance Minister Nirmala Sitharaman concludes pre-Budget meetings
- With IANS inputs.
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SBI invests Rs 100 crore in JSW Cement to pick minority stake
