Penna Cement files DRHP with SEBI for Rs 1,550 cr IPO
Hyderabad-based Penna Cement Industries has filed a draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise around Rs 1,550 crore through an initial public offering (IPO).
The IPO includes a fresh issue of Rs 1,300 crore and an offer for sale of up to Rs 250 crore by its promoter PR Cement Holdings. As of now, PR Cement Holdings holds a 33.41% stake in the company.
In addition, the company will use Rs 130 crore and Rs 110 crore towards setting up a waste heat recovery plant in Tandur and Talaricheruvu, respectively.
Penna Cement has a strong brand recall in the southern and western states of India. 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 the capacity is expected to reach 16.5 mmtpa by FY24.
In fiscal 2021, Penna Cement reported a profit of Rs 152.07 crore and revenue from operations stood at Rs 2,476.39 crore.
Axis Capital, ICICI Securities, Edelweiss Financial Services, Yes Securities (India) and JM Financial are the merchant bankers that will advise the company on the IPO.
This is Penna Cement's second attempt to go public. Earlier in November 2018, the company had filed draft papers with SEBI to float Rs 1,550 crore initial share-sale and had received its clearance too. However, the cement player did not launch the IPO.