Penna Cement Industries Ltd on Friday 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.
On 6 May, Nirma Group’s cement company, Nuvoco Vistas Corp. Ltd, filed a DRHP with Sebi to raise ₹5,000 crore
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.
It has four integrated manufacturing facilities and two grinding units spread across Andhra Pradesh, Telangana and Maharashtra, with an aggregate cement production capacity of 10 million tonnes per annum (MMTPA) as of March 2021, and it is in the process of increasing capacity to 16.5 MMTPA, which is expected to be operational by FY24.
It is also in the process of increasing our aggregate clinker production capacity from 7.8 MMTPA as of March 2021 to 10.8 MMTPA, which is expected to be operational by FY24.
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Original Source – LiveMint