This cement maker files DRHP with SEBI for IPO

New Delhi: The slowdown in the economy notwithstanding, there are a slew of companies that are planning to come out with IPOs in the next few weeks or months. Now Penna Cement has filed its draft red herring prospectus (DRHP) with SEBI for Rs1,550 crore IPO. 

The IPO, as per the DRHP, will have fresh issue of equity shares worth about Rs 1,300 crore. It will also have offer for sale of up to Rs 250 crore by promoter of the company. 

The proceeds from the IPO will be utilized by the company to pay off debts of Rs 550 crore. Another Rs 105 crore will be used by the company for meeting capital expenditure requirements for the new KP Line II project that it is implementing. Another Rs 80 crore will be utilized by Penna Cement for upgrading the raw grinding and cement factory that it has in Talaricheruvu.

The IPO proceeds will also be utilized for setting up two waste heat recovery plants, one in Tandur and another at Talaricheruvu. 

The Hyderabad-based company has four cement plants and two grinding units in states like Maharashtra, Andhra Pradesh and Telangana. Is the last fiscal 2020-2021, Penna Cement clocked a net profit of Rs 152 crore. The revenues from operations of the company stood at Rs 2,476 crore.