Penna Cement Industries to raise Rs1,550 Cr via IPO
Penna Cement Industries Ltd on 14th May filed a draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) to raise nearly ?1,550 crore through an initial public offering (IPO). The IPO comprises a fresh issue of ?1,300 crore and an offer for sale of up to ?250 crore by its promoter PR Cement Holdings Ltd. Currently, PR Cement Holdings hold 33.41% stake in the company. Edelweiss Financial Services Ltd, Axis Capital, ICICI Securities, JM Financial and Yes Securities are the lead managers to the issue. The proceeds from the issue will be used to pay debts of up to ?550 crore. As of March 2021, the amount outstanding under its fund-based and non-fund based working capital and term loan facilities was ?1,548.87 crore. The company will use up to ?105 crore for funding of capital expenditure requirements towards the KP Line II projects, ?80 crore towards upgrading the raw grinding and cement mill at Talaricheruvu, ?110 crore towards setting up the WHR Plant at Talaricheruvu, and ?130 crore for setting up the WHR Plant at Tandur. For FY21, the company posted total income of ?2,599.35 crore versus ?2,176.25 crore a year ago. Net profit for the period stood at ?152.07 crore against ?23.02 crore last year. Penna Cement is one of the largest privately held cement companies in India and a leading integrated cement player in terms of cement production capacity.