Hyderabad- grounded Penna Cement Diligence has entered blessing from the capital request controller Securities and Exchange Board of India (SEBI) to go ahead with its Rs-crore original public immolation (IPO).
The IPO comprises a fresh issue of Rs crore and an offer for trade of over to Rs 250 crore by the protagonist PR Cement Effects. Presently, PR Cement Effects holds a33.41 percent stake in the company.
Penna Cements intends to use part of the fresh issue finances for repaying of debt (Rs 550 crore) and capital expenditure conditions (Rs 105 crore) for its KP Line II Design.
In addition, the finances of Rs 80 crore will be used for upgrading raw grinding and cement shop in Talaricheruvu, while Rs 110 crore and Rs 130 crore will be utilised for setting up a waste heat recovery factory in Talaricheruvu and Tandur, independently, as per the DRHP.
Incorporated in 1991, the Hyderabad- grounded cement company, which is promoted by P Prathap Reddy, Pioneer Builders and P R Cement Effects, is one of the largest intimately held cement companies in India and a commanding intertwined cement player in terms of cement product capacity, as of March 2021. It has a strong brand recall in the southern and western countries of India.
It has four integrated manufacturing installations and two grinding units across Telangana, Andhra Pradesh and Maharashtra with an aggregate capacity of 10 million tonnes per annum (mmtpa) as of March 2021, and its capacity is anticipated to reach16.5 mmtpa by financial 2024.
In FY21, the company’s profit from operations stood at Rs crore and profit at Rs 152 crore, adding from Rs crore and Rs 23 crore in FY20 independently.
The cement demand in India is anticipated to grow at a CAGR of 6-7 percent between FY21 and FY26 on account of structure investments, healthy reanimation in the casing demand and colorful Government Enterprise.
Axis Capital, ICICI Securities, Edelweiss Financial Services, Yes Securities (India) and JM Financial are the trafficker bankers to the IPO.
