InvestorQ : What are the details of the proposed IPO by Penna Cement?
Anamika Sodhani made post

What are the details of the proposed IPO by Penna Cement?

Angel dcosta answered.
8 months ago

Penna Cement Industries has just filed the DRHP with SEBI to raise Rs.1,550 crore via an IPO. This will comprise of a fresh issue of Rs.1,300 crore and an offer for sale or OFS of around Rs.250 crore. The OFS will be done by the holding company, PR Cements, which owns 33.4% stake in Penna Cement. This is the second major cement company to come out with the IPO after Nuvoco Vistas, part of the Nirma Group of Gujarat announced an IPO of Rs.5,000 crore.

The proceeds of the IPO will be used to defray debt to the tune of Rs.550 crore. That is nearly one-third of the debt of the company. It will also use the fresh funds raised for funding of capital expenditure of KP Line II projects, upgrading raw grinding and cement mill at Talaricheruvu and in setting up the WHR plant at Tandur in the state of Telangana.

For FY21, Penna Cement posted top line revenues of Rs.2,599 crore while the net profits for FY21 stood at Rs.152 crore. Penna Cement is one of the largest privately held cement companies in India.