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. Currently, P R Cement Holdings holds a 33.41% stake in the company.
Axis Capital Limited, ICICI Securities Limited, Edelweiss Financial Services Limited, Yes Securities (India) Limited and JM Financial Limited are the bankers to the IPO.
Penna Cements plans to utilise part of the fresh capital raised for repayment of Rs 550 crore of certain borrowings besides funding capital expenditure requirements of Rs 105 crore for its KP Line II Project.
“The firm will use Rs 80 crore towards upgrading its raw grinding and cement mill in Talaricheruvu, Rs 110 crore and Rs 130 crore towards setting up a waste heat recovery plant in Talaricheruvu and Tandur, respectively, the company’s Draft Red Herring Prospectus (DRHP) said.
The company 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 its capacity is expected to reach 16.5 mtpa by fiscal 2024. In FY 21 it met 53 % of its power requirements from captive sources.
In May 2019, the company acquired Singha Cement, a Sri Lankan Cement Company that operates a packing terminal in Colombo, to augment its focus on having a port-based distribution strategy.
Additionally, in March 2018, it has commissioned a port-based cement terminal in India at Krishnapatnam with an automated ship loading facility and packing terminals at Cochin, Gopalpur and Karaikal ports
In FY21, the company’s revenue from operations stood at Rs 2,476.4 crore, while its operating profit was at Rs 479.8 crore.
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