Penna Cement files for Rs 1,550-crore IPO, to use funds for expansion...

    Penna Cement files for Rs 1,550-crore IPO, to use funds for expansion

    Hyderabad-based Penna Cement filed for a Rs 1,550 crore initial public offering (IPO) with the markets regulator Sebi on Saturday, to raise funds for expansion and paying off debt.
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    Cement Holdings

    The IPO will consist of a fresh issue of Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the company’s promoter PR Cement Holdings. ET has seen the Draft Red Herring Prospectus. The book running lead managers for the issue are Edelweiss Financial Services, IIFL Holdings, JM Financial and Yes Securities (India).

    The 10 MT Penna Cement is spread across Andhra Pradesh, Telangana and Maharashtra with a total cement producing capacity of 10 MT.

    In an earlier interview with ET, the company’s CEO Vikram Reddy had said Penna Cement wants to embark on an expansion plan; a mix of brownfield and greenfield that will take its capacity to 16.5 MT by 2020.

    For this, the company has outlined an expenditure of Rs 3,500 crore to start a greenfield project in the north and build port-based facilities in Odisha and Kolkata in a bid to enter the northern and eastern markets.

    As on September this year, the company had outstanding loans of Rs 1,938 crore. Its revenue from operations for the quarter ended June stood at Rs 457 crore whereas net profit was Rs 12 crore.

    Housing and infrastructure revival has prompted a bunch of mid-sized cement firms to go in for expansion, and in the past few months, many have tapped the equity markets to raise funds. According to PTI, Emami Cement had filed a Rs 1,000 crore IPO in October.

    Info- https://realty.economictimes

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