Penna Cement IPO

 

Penna Cement is among India’s major privately owned cement firms, with a 10-million-tonne-per-year installed capacity. It has 4 Cement Plants, 2 Grinding Units, 2 Packing Units and 1 Power Plant in different locations within India. Penna Cement IPO will hit the market in 2021.

About

Penna Cement, which was incorporated in 1991, has developed itself as among the most reliable cement companies in India, with strong presence in southern and western India. Their clients ranges from individual homeowners to major real estate developers, as well as state authorities and multinational infrastructure companies.

Mission

Penna Cement believes that the organisation’s long-term success is dependent not only on long-term interactions with its clients, but also on good partnerships with all of its stakeholders.

They pay attention to their clients in order to provide them the products which work for them. They consider their suppliers as colleagues. They teach their workers how to deal with suppliers and clients with honesty and modesty.

By offering sustainable healthcare education and facilities to their regional societies, they contribute to their well-being.To minimize their environmental effect they do what is good for society, not what is convenient. They always believe in ‘Quality Relationship Building.’

Financials Trends

Particulars	For the year ended ( in Cr.)
	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	3,774.43	3,752.23	3,721.84
Total Revenue	2,599.35	2,176.25	2,159.12
Profit After Tax	152.07	23.02	85.13

Issue

Penna Cement Industries Limited has filed Draft Red Herring Prospectus to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1550 crore on 14 May 2021.

The Offer includes a fresh Issue of Rs. 1300 crore and an offer to sell(OFS) up to Rs. 250 crore value equity shares of Penna cement with face value Rs 10 each by the promoters.

Penna Cement also Submitted Drhp in November 2019 and got sebi’s approval as well. However, they didn’t lunched the IPO due to unknown reasons.

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Use of funds

The funds will be utilized to pay off debts totaling up to 550 crore. The pending balance under its fund-related and non-fund dependent working capital and term loan resources was 1,5488.70 million as of March 2021.

The company plans to spend up to 105 crore on capital expenditures for the KP Line II projects, as well as 80 crore on enhancing the raw grinding and cement mill at Talaricheruvu.

They are also use 110 crore for establishing the WHR Plant at Talaricheruvu, and 130 crore for establishing the WHR Plant at Tandur.

IPO Details

IPO Opening Date	2021
IPO Closing Date	2021
Issue Type	Book Builting
Face Value	10 per  share
IPO Price	0 to 0 per equity share
Market Lot	0
Min Order Quantity	0
Listing At	BSE, NSE
Issue Size	1550 Cr.
Fresh Issue	1300 Cr.
Offer for Sale	250 Cr.

IPO Tentative Date

The Penna Cement IPO open date is 2021, and the close date is 2021. The issue may list in 2021.

IPO Open Date	2021
IPO Close Date	2021
Basis of Allotment Date	2021
Initiation of Refunds	2021
Credit of Shares to Demat Account	2021
IPO Listing Date	2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimal level of 1 lot, based on availability, for every shareholder.

Penna Cement IPO GMP

Penna Cement IPO Grey Market Premium is INR 0.

Promoters

• P Prathap Reddy
• Pioneer Builders
• P R Cement Holdiings Limited

Promoter Holding

Pre Issue Share Holding	95.99%
Post Issue Share Holding