Uncategorized

Penna Cement gets Sebi nod for Rs 1,550 crore IPO

Penna Cement, profitable since inception on a standalone basis, has a strong brand recall in the southern and western states of India. It operates out of four integrated manufacturing facilities and two grinding units across Telangana, Andhra Pradesh and Maharashtra with an aggregate capacity of 10 mmtpa as of March 2021, and its capacity is expected to reach 16.5 mmtpa by fiscal 2024. In FY 21 it met 53 % of its power requirements from captive sources. 

In May 2019, the company acquired Singha Cement, a Sri Lankan Cement Company that operates a packing terminal in Colombo, to augment its focus on having a port-based distribution strategy. Additionally, in March 2018, it has commissioned one of the largest port-based cement terminal in India at Krishnapatnam with an automated ship loading facility and packing terminals at Cochin, Gopalpur and Karaikal ports. Recently Union Minister Sonowal inaugurated a bagging and bulk cement terminal at Syama Prasad Mookerjee Port.
In order to boost its port-based distribution strategy, it acquired a self -discharging cement carrying vessel with a maximum cargo capacity of 25,500 tonnes. Port based logistics infrastructure enables to manage cost efficiencies in the transportation of the cement and clinker products to new markets as well as in the procurement of imported coal through the ports.

In FY21, the company’s revenue from operations stood at Rs 2,476.4 crore, while its operating profit was at Rs 479.8 crore. 

Axis Capital Limited, ICICI Securities Limited, Edelweiss Financial Services Limited, Yes Securities (India) Limited and JM Financial Limited are the bankers to the IPO 

Cement industry in India is expected to grow at a CAGR of 6-7% between FY21 and FY26 on account of infrastructure investments, healthy revival of the housing demand and various Government Initiatives. Under the Aatma Nirbhar Bharat programme, the government has allocated Rs 18,000 crores additional outlay for the PMAY-U, expected to drive demand for underlying sectors such as cement. The scheme supports the construction and infrastructure segment by reducing the lock-up capital and the cost of bank guarantee, hence supporting infrastructure-dependant segments like cement.

This news was shared to Prittle Prattle News via press release.

Related Posts

1 of 211