Begin typing your search...

Penna Cement gets Sebi nod for 1,550-cr IPO

City-based Penna Cement Industries has received an approval from Securities and Exchange Board of India (Sebi) to proceed with its Rs1,550-crore initial public offering (IPO).

image for illustrative purpose

Penna Cement gets Sebi nod for 1,550-cr IPO
X

19 Oct 2021 12:07 AM IST

Hyderabad: City-based Penna Cement Industries has received an approval from Securities and Exchange Board of India (Sebi) to proceed with its Rs1,550-crore initial public offering (IPO).

The IPO includes a fresh issue of Rs1,300 crore and an offer for sale of up to Rs 250 crore by its promoter PR Cement Holdings. Currently, PR Cement Holdings holds a 33.41 percent stake in the company.

Penna Cements plans to utilise part of the fresh capital raised for repayment of Rs550 crore of certain borrowings besides funding capital expenditure requirements of Rs105 crore for its KP Line II Project. The firm will use Rs80 crore towards upgrading its raw grinding and cement mill in Talaricheruvu, Rs110 crore and Rs130 crore towards setting up a waste heat recovery plant in Talaricheruvu and Tandur, respectively, the DRHP said.

Set up in 1991, It operates out of four integrated manufacturing facilities and two grinding units across Telangana, Andhra Pradesh and Maharashtra with an aggregate capacity of 10 mmtpa as of March 2021, and its capacity is expected to reach 16.5 mmtpa by fiscal 2024. In FY 21 it met 53 percent of its power requirements from captive sources.

In FY21, the company's revenue from operations stood at Rs 2,476.4 crore, while its operating profit was at Rs 479.8 crore.

Axis Capital Limited, ICICI Securities Limited, Edelweiss Financial Services Limited, Yes Securities (India) Limited and JM Financial Limited are the bankers to the IPO.

SEBI IPO Penna Cement 
Next Story
Share it