Cement producer Penna Cement has filed its draft purple herring prospectus with the Securities and Exchange Board of India for an IPO price Rs 1,550 crore. The public issue includes a contemporary issue of shares price Rs 1,300 crore and an offer-for-sale by promoters, PR Cement Holdings Ltd of as much as Rs 2,500 crore. The company has deliberate to utilise the online proceeds for compensation of Rs 550 crore of sure borrowings availed by the company, funding capital expenditure necessities of Rs 105 crore for its Krishnapatnam line II (KP Line II) project, Rs 80 crore in the direction of upgrading its uncooked grinding and cement mill in Talaricheruvu, Rs 110 crore in the direction of establishing a waste warmth recovery plant in Tandur, and Rs 130 crore for establishing Talaricheruvu WHR plant.
Key issues to learn about Penna Cement IPO
– The listed business friends of Penna cement embody 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 bottom business (Birla Corporation) P/E ratio stands at 14x, therefore, the common P/E ratio is 41.30x.
– The international coordinators and e-book working lead managers to the issue embody Edelweiss Financial Services, Axis Capital, ICICI Securities, JM Financial and YES Securities. The registrar to Penna Cement is KFin applied sciences Private Ltd.
– At the top of March 31, 2021, Penna Cement’s income from operations stood at Rs 2,476.4 crore. The company posted a web revenue of Rs 152.1 crore within the monetary year. The company’s cement merchandise embody extraordinary portland cement, Portland pozzolana cement and portland slag cement.
– Although the continued COVID-19 pandemic has considerably affected the worldwide financial system, Penna Cement stated that it was not considerably impacted by the COVID-19 pandemic, and accordingly, its revenues from operations elevated by 14.25 per cent from Rs 2,167 crore in fiscal 2020 to Rs 2,476 crore within the fiscal 2021.
– Penna Cement operates built-in manufacturing services and grinding models throughout Andhra Pradesh, Telangana, and Maharashtra with an combination capability of 10 MMTPA as of March 2021, and the capability is predicted to achieve 16.5 MMTPA by FY24.