Penna Cement IPO

Penna Cement IPO

Penna Cement aims to raise Rs 1,550 crore via its IPO, consisting of a fresh issue worth Rs 1,300 crores and an offer for sale of Rs 250 crores. The funds will be utilized for repaying borrowings, capital expenditure for various projects including the KP Line II project and setting up a waste heat recovery plant at Tandur, and for other general corporate purposes.

Penna Cement IPO – Important Details

Here are the important details of the Penna Cement IPO in a table format:

Details Information
Penna Cement IPO Date To be announced
Penna Cement IPO Listing Date To be announced
Penna Cement IPO Price NA
Penna Cement IPO Lot Size NA
Penna Cement IPO Total Issue Size Rs 1,550-crore
Penna Cement IPO Basis of Allotment NA
Penna Cement IPO Initiation of Refunds NA
Penna Cement IPO Credit of Shares to Demat NA
Penna Cement IPO Issue Type NA 
Penna Cement IPO Listing At NSE and BSE

Penna Cement Industries Limited – Company Profile

Penna Cement Industries Limited is a renowned cement company based out of Hyderabad. The company, established in 1991, has become one of the largest privately held cement companies in India with a strong presence in southern and western regions. Penna Cement is promoted by P Prathap Reddy, Pioneer Builders, and P R Cement Holdings.

The company operates four integrated manufacturing facilities and two grinding units across Telangana, Andhra Pradesh, and Maharashtra. These facilities collectively had an aggregate capacity of 10 million tonnes per annum (mmtpa) in 2021. By FY24, this capacity is projected to reach 16.5 mmtpa.

Penna Cement IPO Objective

The proceeds from Penna Cement’s IPO will be channeled towards several key areas, including a debt repayment of ₹550 crores, capital expenditures for the KP Line II Project (₹105 crores), upgrading raw grinding and cement mill in Talaricheruvu (₹80 crores), and establishing waste heat recovery plants in Talaricheruvu and Tandur (₹110 crores and ₹130 crores respectively).

Penna Cement Industries Ltd IPO Risks And Challenges

Penna Cement faces potential risks including intense competition within India’s cement industry and the volatility of raw material prices, which could impact operational costs. Furthermore, regulatory changes could disrupt its operations, and its performance is significantly dependent on the wellbeing of the real estate and infrastructure sectors.

  1. Industry Competition: The cement industry in India is highly competitive with several large players in the market. Maintaining and improving market share is an ongoing challenge.
  2. Regulatory Risks: Any changes in government regulations related to the cement industry could potentially impact Penna Cement’s operations.
  3. Raw Material Fluctuations: The price and availability of raw materials used in cement production can fluctuate, impacting the company’s operational costs.
  4. Dependence on the Real Estate and Infrastructure Sectors: The company’s performance is closely tied to the health of the real estate and infrastructure sectors. Any slowdown in these sectors could impact demand for cement.

Penna Cement Industries Ltd Peer Comparison

Company Name Revenue from Operations (₹ in million) Face Value per Equity Share (₹) P/E Ratio EPS (basic and diluted) (₹) RoNW (%) Closing Price (₹) NAV (₹)
Penna Cement Industries Limited* 24,763.99 10.00 NA 11.36 13.14 NA 86.48
UltraTech Cement Limited 421,248.30 10.00 31.58 201.61 14.9% 6,364.15 1,355.35
Shree Cement Limited 128,683.90 10.00 65.91 435.35 11.7% 28,695.00 3,650.06
Ambuja Cements Limited 245,161.70 2.00 25.93 11.91 10.4% 308.85 114.61
ACC Limited 137,859.80 10.00 24.65 76.16 11.3% 1,872.55 676.28
Dalmia Bharat Limited 96,740.00 2.00 130.32 11.61 2.1% 1,509.05 547.32
The Ramco Cements Limited 53,893.00 1.00 37.62 26.00 12.1% 978.00 212.30
India Cements Limited 51,864.44 10.00 17.82 9.18 0.9% 163.60 177.41
Birla Corporation Limited 69,156.90 10.00 13.99 65.60 10.5% 917.75 624.09
J.K. Cement Limited 58,016.38 10.00 44.61 62.56 16.4% 2,790.90 391.83
JK Lakshmi Cement Limited 43,640.70 5.00 19.20 21.08 14.7% 404.80 143.36
Orient Cement Limited 24,217.97 1.00 24.93 4.23 7.7% 105.45 54.59

Penna Cement Industries Limited Financial Information

Particular As at 31 March 2019 As at 31 March 2020 As at 31 March 2021
Revenue (in million) 21,591.22 21,762.53 25,993.50
Equity (in million) 10,569.38 11,193.95 12,077.74
Expenses (in million) 21,037.06 21,377.81 23,694.00
Profit and Loss After Tax (in million) 851.33 230.24 1,520.73
RoNW (%) 8.01 2.16 13.14
Diluted EPS only (₹) 6.36 1.72 11.36
NAV per Equity Share (₹) 79.43 79.87 86.48
Total Assets  (in million) 37,218.40 37,522.27 37,744.29
Total Liabilities (in million) 26,163.45 25,806.74 24,868.32

Penna Cement Industries Ltd – Industry & Market Potential

India’s cement industry is the second largest in the world, behind China, and has been growing steadily over the years. The cement industry has been an essential component of India’s infrastructure and housing sectors, which are the primary drivers of demand.

Penna Cement Industries is strategically positioned to tap into this growing market. The company’s operations in the southern and western regions of India allow it to cater to these high demand areas. The company has an established distribution network and a robust dealer network, which should aid its market expansion efforts.

The expected rise in urbanization, increase in the government’s focus on infrastructure development, and the growth of the housing sector are likely to fuel demand for cement in the coming years. This creates an immense market potential for Penna Cement.

Penna Cement IPO – Type of Offer

The Penna Cement IPO comprises a fresh issue of shares worth Rs 1,300 crores, accompanied by an Offer for Sale (OFS) valued at Rs 250 crores.

Penna Cement IPO Offer Size

The offer size for Penna Cement Industries Ltd IPO is Rs 1,550 crores. The details are as follows:

  • Fresh issue: Shares worth Rs 1,300 crores.
  • Offer for Sale (OFS): Shares worth Rs 250 crores.

Penna Cement IPO Allotment Structure

The IPO allotment of Penna Cement Industries Ltd is structured in the following manner:

  • QIB Portion: Not less than 50% of the net offer will be allocated to Qualified Institutional Buyers (QIBs), provided that the company may allocate up to 60% of the QIB portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor portion is reserved for domestic Mutual Funds.
  • Non-Institutional Investors Portion: Not less than 15% of the net offer is reserved for Non-Institutional Investors (NIIs).
  • Retail Portion: Not less than 35% of the net offer is reserved for the retail individual investor (RII) category.

How to apply for the Penna Cement IPO?

  • Select the IPO you wish to apply for from the list of open issues.
  • Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
  • Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
  • When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
  • After completing all the steps, read the declaration and click ‘Submit’.

Additional Steps to Follow:

  • After submitting the request, you will receive a mandate request on your UPI application. Accept the mandate request. Sometimes, it may take a few hours to receive the request. This action will reserve the required amount for the application until the allotment date. If the quantity is allotted, the funds will be debited from your bank account, and the shares will be credited to your demat account at Alice Blue.
  • Upon submitting the IPO bid request, you will receive an SMS from the exchange to confirm your application.
  • To check the status of your application, you can select the applied IPO, and you will be able to see the most recent bids updated in your application.
  • If you do not receive an allotment, the blocked funds will be released on the allotment date. The list of IPOs can also be viewed on the NSE website.

How to Check Penna Cement IPO Allotment Status?

To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.

To determine the status of the allocated IPO, use the the link provided.

If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Signature Global IPO:

  • Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Penna Cement IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
  • NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Penna Cement Industries Ltd Offer Registrar

The registrar for the Penna Cement IPO is KFin Technologies Private Limited. Investors can contact the registrar for ahe registrar for the Penna Cement Industries Ltd offer is KFin Technologies Private Limited. They are responsible for managing the IPO allotment process and other related activities. You can contact them using the following details:

KFin Technologies Private Limited

Address: Selenium, Tower – B, Plot No – 31 and 32, Financial District, Nanakramguda, Serilingampally, Hyderabad 500 032, Rangareddi, Telangana, India

Phone: +91 40 6716 2222

Email: [email protected]

Penna Cement IPO FAQs

Is Penna Cement a listed company?

No, Penna Cement Industries Limited is not a listed company yet. The IPO is expected to be the company’s initial public offering and its shares will be listed on the stock exchange.

What is the IPO size of Penna Cement Industries Limited?

The IPO size for Penna Cement Industries Limited is not mentioned in the provided information. However, the IPO comprises a fresh issue of Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the promoter PR Cement Holdings.

 Who owns Penna Cement?

Penna Cement is owned by its promoters, namely P Prathap Reddy, Pioneer Builders, and PR Cement Holdings. PR Cement Holdings currently holds a 33.41 percent stake in the company.

Is Penna Cement a good investment?

The investment decision depends on various factors such as the investor’s risk profile, investment horizon, and market conditions. It is advisable for investors to carefully study the company’s financials, prospects, and industry trends before making an investment decision.

What is the revenue of Penna Cement Industries Ltd?

As per the provided financial information, the revenue of Penna Cement Industries Ltd for the last financial year was INR 549.75 crores.

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