Penna Cement Industries gets Sebi nod for Rs 1,550-cr IPO

Penna Cement Industries has got markets regulator Sebi’s go ahead for its Rs 1,550-crore initial public offering (IPO). The IPO of Penna Cement comprises fresh issue of up to Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the company’s promoter, PR Cement Holdings Limited.

In November last year, Penna Cement Industries had filed draft papers with Sebi to raise Rs 1,550 crore through IPO.

The company obtained the regulator’s “observation” on May 31, 2019, as per the latest update with the capital markets watchdog.

Sebi’s observation is necessary for any company planning to launch public issues.

The Hyderabad-based firm plans to utilise the proceeds from the IPO for repayment/ pre-payment, in full or in part, of certain borrowings availed by the company and other general corporate purposes.

Edelweiss Financial Services, IIFL Holdings, JM Financial and YES Securities are the book running lead managers to the issue.

Penna Cement has four integrated manufacturing facilities and two grinding units spread across Andhra Pradesh, Telangana and Maharashtra.