Penna Cement Industries gets SEBI’s nod for Rs 1,550 crore IPO
Penna Cement Industries has received the Securities and Exchange Board of India’s (SEBI) approval to raise Rs 1,550 crore through an initial public offering (IPO). The IPO comprises a fresh issue of Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the promoter PR Cement Holdings that currently has a 33.41 percent stake in the company.
The company intends to utilise part of the fresh issue funds for repaying of debt (Rs 550 crore) and capital expenditure requirements (Rs 105 crore) for its KP Line II Project. In addition, the funds of Rs 80 crore will be used for upgrading raw grinding and cement mill in Talaricheruvu, while Rs 110 crore and Rs 130 crore will be utilized for setting up a waste heat recovery plant in Talaricheruvu and Tandur, respectively. Axis Capital, ICICI Securities, Edelweiss Financial Services, Yes Securities (India) and JM Financial are the merchant bankers to the IPO.
Penna Cement Industries is one of the largest privately held cement companies in India and a leading integrated cement player.
