Penna Cement Industries Limited IPO

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(i) It is one of the largest privately held cement companies in India and a leading integrated cement player in terms of cement production capacity. Incorporated in 1991, with over 25 years of operations, it has been able to leverage its brand, strategically located integrated manufacturing facilities, and extensive distribution network to successfully expand its business in west and east India.

(ii) It has four integrated manufacturing facilities and two grinding units spread across the states of Andhra Pra desh, Telangana and Maharashtra, with an aggregate cement production capacity of 10 million tonnes per annum. It has commissioned one of the largest port-based cement facilities in India at Krishnapatnam. It has also acquired Singha Cement (Private) Limited, a Sri Lankan cement company, in May 2019.

(iii) The company believes that the strategic location of its various facilities, packing terminals, and port-based logistics infrastructure provides it with several competitive advantages, including
(i) providing strategic access to south, west, and east India
(ii) enabling it to cost-effectively target markets in east, south, and west India, including Kolkata, Bhubaneswar, Cuttack, Cochin, Pune, and Ahmednagar
(iii) export of cement to Sri Lanka and export of clinker to Bangladesh.

(iv) Its cement products include ordinary portland cement (“OPC”), Portland pozzolana cement (“PPC”) and portland slag cement. It has developed a strong distribution network across India comprising 3,310 dealers and distributors,

Competitive Strengths
(i) Strategically located integrated manufacturing facilities a
(ii) Access to quality raw materials and coal
(iii) Established track record of operational and financial performance

Objects of the Penna Cement Industries Limited IPO:

The company is raising the funds from the IPO for the following purpose. (i) Repayment of borrowings = 5500 million (ii) Funding of  KP Line II project = 1050 million (iii) Funding for upgrading the raw grinding and cement mill at Talaricheruvu = 800 million (iv) Funding of  WHR Plant at Talaricheruvu = 1100 million (v) Funding of  WHR Plant at Tandur = 1300 million (vi) General corporate purposes
DRHP of Penna Cement Industries Limited IPO

Penna Cement Industries Limited IPO Details:

Issue Size: 1550 Cr.
Listing At: NSE,BSE

Promoters And Management:

P. Prathap Reddy, is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in arts (history) from Pachaiyappa’s College, Chennai. He is responsible for managing the end-to-end business of our Company. He has more than 28yea rs of experience in the field of cement, power, construction, alumina, logistics, shipping a and hospitality business. He has been a Director of the Company since incorporation. Lakshmi Kantham Dabbara, is the Whole-time Director of the Company. He holds a provisional bachelor’s degree in science from Sri Venkateswara University. He is responsible for the operations of all the plants of our Company including procurement of raw materials, commercial production, and manufacturing operations. He has more than 37 years of experience in the cement industry. He has been a Director of the Company since September 1, 2012. P. Deepthi Reddy, is a Non-Executive Director of the Company. She holds a bachelor’s degree in business administration from the University of Wales, Cardiff. She has more than 10 years of experience in the field of business administration and power projects. She has been a Director of the Company since August 20, 2014. P. Venugopal Reddy, is a Non-Executive Director of the Company. He holds a bachelor’s degree in commerce from Sri Venkateshwara Arts College, Sri Venkateshwara University. He is currently the Managing Director of Pioneer Builders Limited and has more than 14 years of experience in construction and infrastructure management. He has been a Director of the Company since January 1, 2001

Comparison With Peers:

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Recommendation on Penna Cement Industries Limited IPO:

To be updated shortly

Lead Manager of Penna Cement Industries Limited IPO:

  1. Axis Capital Limited
  2. Edelweiss Capital Limited
  3. ICICI Securities Limited
  4. JM Financial Consultants Private Limited
  5. Yes Securities (India) Limited

Registrar of Penna Cement Industries Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

H.No. 8-2-268/A/1/S & S1, Plot No. 705, Road No. 3, Banjara Hills, Hyderabad 500034, Telangana, India

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