Apollo Global Management is doubling down the JSW group by joining synergy metals investments for Rs. 1500 crore capital raise in the cement business. The aim is to fund growth plans and become 25 million tonnes scaled operations. Dubai-based synergy fund has sought the clearance from Competition Commission of India to acquire an equity stake in JSW cement. Compulsorily Convertible preference shares will be issued by JSW to two investors who are each putting in 750 crore INR at a post-money valuation of around Rs 8500- 8750 crore; the investors can own up to 19% of the company and can get a broad seat upon conversion of CCPs.
For a wholly family-owned JSW cement’s investments are seen as their steps towards their initial public listing. This will be the second for Apollo in the JSW group. The cement operations have huge synergies with JSW Steel in distribution, access to raw materials which makes it uniquely poised. The industry is expected to post approx 45% YOY growth in volumes.