Cement producer Penna Cement has filed its draft red herring prospectus with the Securities and Exchange Board of India for an IPO worth Rs 1,550 crore. The public situation comprises a fresh situation of shares worth Rs 1,300 crore and an give-for-sale by promoters, PR Cement Holdings Ltd of up to Rs 2,500 crore. The business has planned to utilise the net proceeds for repayment of Rs 550 crore of specific borrowings availed by the business, funding capital expenditure specifications of Rs 105 crore for its Krishnapatnam line II (KP Line II) project, Rs 80 crore towards upgrading its raw grinding and cement mill in Talaricheruvu, Rs 110 crore towards setting up a waste heat recovery plant in Tandur, and Rs 130 crore for setting up Talaricheruvu WHR plant.
Key items to know about Penna Cement IPO
– The listed business peers of Penna cement contain UltraTech Cement, Shree Cement, Ambuja Cements, ACC Ltd, Dalmia Bharat, The Ramco Cements, India Cements, Birla Corporation, JK Cement, JK Lakshmi Cement, Orient Cement and Sagar Cement.
– The highest business P/E ratio (Dalmia Bharat) is 130.30, and the lowest business (Birla Corporation) P/E ratio stands at 14x, therefore, the typical P/E ratio is 41.30x.
– The international coordinators and book operating lead managers to the situation contain Edelweiss Financial Services, Axis Capital, ICICI Securities, JM Financial and YES Securities. The registrar to Penna Cement is KFin technologies Private Ltd.
– At the finish of March 31, 2021, Penna Cement’s income from operations stood at Rs 2,476.4 crore. The business posted a net profit of Rs 152.1 crore in the economic year. The company’s cement solutions contain ordinary portland cement, Portland pozzolana cement and portland slag cement.
– Although the ongoing COVID-19 pandemic has considerably impacted the international economy, Penna Cement mentioned that it was not considerably impacted by the COVID-19 pandemic, and accordingly, its revenues from operations improved by 14.25 per cent from Rs 2,167 crore in fiscal 2020 to Rs 2,476 crore in the fiscal 2021.
– Penna Cement operates integrated manufacturing facilities and grinding units across Andhra Pradesh, Telangana, and Maharashtra with an aggregate capacity of 10 MMTPA as of March 2021, and the capacity is anticipated to attain 16.5 MMTPA by FY24.