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

Hyderabad-headquartered Penna Cement Industries Limited has received approval from Securities and Exchange Board of India (Sebi) to go ahead with its Rs 1,550-crore initial public offering (IPO).

The proposed IPO consists of a fresh issue of up to Rs 1,300 crore and an offer for sale of up to Rs 250 crore by company's promoter PR Cement Holdings Limited.

Edelweiss Financial Services Limited, IIFL Holdings Limited, JM Financial Limited and YES Securities (India) Limited are the book running lead managers for the issue.

Penna Cement is one of the largest privately held cement companies in India, in terms of cement production capacity. 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 tonnes per annum.

The company plans to utilise the IPO proceeds for repayment/pre-payment in full or in part, of certain borrowings availed by the company. The company also intends to further expand into north, central and other east India markets through a phased expansion plan.