InvestorQ : When is the JSW Cements IPO likely to happen? Has it postponed from this year?
Dawn Cherian made post

When is the JSW Cements IPO likely to happen? Has it postponed from this year?

Answer
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Dilmini Mercia answered.
2 months ago


It looks like the JSW group’s IPO plan for its cement business has been put off by at least 2 years. That means it is unlikely to happen before December 2022. JSW Cements will use the time to ramp up its annual capacity from 14 MT to 20 MT by the time of the IPO.

According to Parth Jindal who heads the cement business, year 2020 is likely to be the second year of negative demand growth for cement and hence it may not be the right time to plan an IPO as sentiments are likely to be very weak.

For the Mar-20 quarter, aggregate volumes of listed cement companies fell by 13% on account of the lockdown. The impact is likely to be a lot more acute in the FY21 as the first six months of the year are almost likely to be lost in the pandemic and the lag effect.

CRISIL expects rural segment to outperform urban demand over the next few months but that may not be enough to drive the economy as a whole and urban demand will have to pick up for cement companies to gain traction.

JSW Cement is projected to report turnover for the FY21 at Rs.3700 crore. It still remains a predominant player in South India and in the Mumbai Metropolitan region. JSW Cement expects the urban demand to take at least a year to stabilize.