Apollo, Synergy Metals Investments to invest about $200 mn in JSW Cement
Photo Credit: Reuters

Two private equity players Apollo Global Management and Synergy Metals Investments Holding have decided to invest up to Rs 1,500 crore (around $201.7 million) in Sajjan Jindal-led unlisted JSW Cement. 

A few weeks ago, Synergy had received approval from the anti-monopoly watchdog to acquire a minority stake in the cement firm part of the $13 billion JSW Group. 

Earlier this month, VCCircle reported this transaction is Synergy’s biggest investment in India. 

It is also the first investment in India by Apollo’s Hybrid Value Fund, according to Utsav Baijal, senior partner and head of India private equity at Apollo Global Management. 

Apollo’s transaction is subject to customary closing conditions including regulatory approval, the company said. 

The transaction is a structured private equity deal wherein compulsorily convertible preference shares (CCPS) are being issued to the investors and the conversion of such CCPS into common equity of the company will be linked to the company’s future performance and valuation determined at the time of the initial public offering (IPO). 

JSW Cement aims to go public by the end of next calendar year. 

Narinder Singh Kahlon, director of finance at JSW Cement, said, "Financing our growth and expansion strategy with investments from Synergy and Apollo sets us up very well for our planned IPO in the next 12-18 months." 

Citigroup Global Markets India acted as exclusive placement agent on this transaction for JSW Cement. JSW Cement and its promoter are being advised by Khaitan & Co. 


US-based private equity giant Apollo Global Management is among the leading global alternative asset managers with offices in New York, Los Angeles, London, Frankfurt, Madrid, Mumbai, New Delhi, Singapore, Hong Kong, Shanghai and Tokyo, among others. 

It had assets under management (AUM) of approximately $461 billion as of March 31, 2021. The firm's Hybrid Value business provides equity and debt capital solutions to private and public companies. 


Synergy Metals Investments Holding is the investment fund of Synergy Metals and Mining Fund, a private equity fund set up by a former executive of steelmaker ArcelorMittal, Sudhir Maheshwari, in 2015. 

The vehicle is a private equity fund and strategic advisory firm that typically has an average investment size of $20-50 million. It invests in industrial, metals and power sectors globally and focuses on special situations. 

As per its website, the fund has deployed alongside co-investors $470 million across nine investments including those in sectors such as steel, auto components, mining, and power. The bets are spread across seven countries – Brazil, Italy, Romania, Thailand, India, Indonesia, and Myanmar. 

JSW Cement 

JSW Cement manufactures cement, clinker and related products at its plants at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Dolvi in Maharashtra, Shiva Works in Odisha and Salboni in West Bengal. It currently has a capacity of 14 million tonnes per annum versus 6 MTPA three years ago. 

This investment will help JSW Cement accelerate its capacity from 14 to 25 MTPA, JSW Cement’s statement added. 

Nilesh Narwekar, chief executive officer of JSW Cement, said, "We will utilise these funds to grow both organically and inorganically. We plan to enter key new geographies, and expand our share in existing markets. With new initiatives across our plants and functions, we are prepared to continue to build and play a significant role in the core infrastructure growth of the country."

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