Shares of this JSW Group company soared approximately 15 percent in Thursday’s trading session after the company’s Parent plans for an IPO to fund its expansion. Year-to-date, the company’s share has, so far, gained close to 10 percent.
With a market capitalization of Rs 1,150.31 crores, the stocks of Shiva Cement Limited closed at Rs 58.99 in Thursday’s trading session, gaining around 15 percent compared to the previous closing levels of Rs 51.64 apiece.
Such stock price movements were observed today after a Moneycontrol report mentioning plans of JSW Cement, the parent company of Shiva Cement Limited, for a mega Initial Public Offering (IPO) worth Rs 6,000 crores.
According to sources, the target is to mop up the growth capital and fund the aggressive expansion plans of the company. It was further also added that a final decision on the size of the share sale had not been made yet.
If JSW Cement’s listing plans gain traction, it could become the largest IPO in the cement sector since the Nuvoco Vistas’ IPO worth Rs 5,000 crores done in August 2021.
During the recent financial quarters, the company’s basic business indicators such as operating revenues and after-tax profits showed abnormal movements in opposing directions.
The former showed a drastic jump from a ‘nil’ amount of revenue during Q1FY23-24 to Rs 104.43 crores during Q2FY23-24, and the latter, during the same time horizon, slipped sharply from losses of Rs 4.66 crores to losses of Rs 19.43 crores.
According to the shareholding pattern data available for the quarter ended September 2023, the company’s Promoters hold a 59.59 percent stake, and the Public (retail) investors hold a 40.31 percent stake in the company.
Shiva Cement Limited is a company based in India that is engaged in the business of manufacturing and selling cement and other associated products. Catering to the domestic markets, some of the company’s products include portland slag cement (PSC), clinker, limestone chips, etc.
Written by Amit Madnani
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