Penna Cement files Rs 1,550-cr IPO papers with Sebi

Penna Cement Industries has filed draft papers with capital markets regulator Sebi to raise Rs 1,550 crore through an initial public offer (IPO).

The IPO comprises fresh issuance of shares worth up to Rs 1,300 crore, besides, an offer for sale of up to Rs 250 crore by company's promoter PR Cement Holdings, according to the draft red herring prospectus (DRHP) filed with Sebi.

Proceeds of the issue will be utilised for repayment of certain borrowings availed by the company and for other general corporate purposes.

Edelweiss Financial Services, IIFL Holdings, JM Financial and Yes Securities will manage the company's public issue.

The Hyderabad-headquartered firm is among the leading cement players in south India with a strong brand recall and extensive distribution network.

It has four integrated manufacturing facilities and two grinding units spread across Andhra Pradesh, Telangana and Maharashtra, with an aggregate cement production capacity of 10 million tonne per annum (MMTPA) as of June 30, 2018.

Last month, Emami Cement had filed papers with the Securities and Exchange Board of India (Sebi) to raise Rs 1,000 crore through initial share-sale.