Penna Cement Industries IPO – Review, Allotment, Subscription & more
Last Updated Date: Nov 17, 2022Let’s have a detailed review of the company and analytics of the Penna Cement Industries IPO release date, IPO offer price, subscription, Penna Cement Industries Limited IPO allotment, grey market price, and other details like the company’s background, its financial positions, Penna Cement Industries IPO promoters, and other related things.
| Face Value | Rs 10 |
| Price Band | NA |
| Listing At | BSE, NSE |
| Min. Order Quantity | NA |
| Listing Date | NA |
| Offer for Sale | Rs 2,500 Millions |
| Fresh Issue | Rs 13,000 Millions |
| IPO Size | Rs 15,500 Millions |
| Tick Size | Rs.1 |
Penna Cement Industries IPO is listed at a [●] premium. Check out the live share price by clicking on the below link.
Summary of Penna Cement Industries IPO
Penna Cement Industries Limited one of the largest privately held cement companies in India in terms of cement production capacity. Initial public offer of up to [●] Equity Shares of Rs. 10 each, at an Offer Price of Rs. [●] per Equity Share for cash aggregating up to Rs. 15,500 million. The Offer comprises of a Fresh Issue of up to [●] Equity Shares aggregating to Rs. 13,000 million and an Offer for Sale of up to [●] Equity Shares aggregating to Rs. 2,500 million by the Selling Shareholder.
The Promoters of this company are P. Prathap Reddy, Pioneer Builders, and P R Cement Holdings Limited. The lead manager to the issue are Edelweiss Financial Services Limited, Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and YES Securities (India) Limited and the Registrar to this issue is KFin Technologies Private Limited.
Penna Cement Industries IPO Date
The opening and the closing date of Penna Cement Industries IPO are not known yet.
Check out Related IPO Links:
| Penna Cement IPO GMP |
| Allotment of Penna Cement IPO |
Penna Cement Industries IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – | ||||
| 2nd Day – | ||||
| 3rd Day – | ||||
| 4th Day – | ||||
| 5th Day – | ||||
| Shares Offered or Net Issue |
The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.
Penna Cement Industries IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment Status is not yet disclosed.
Penna Cement Industries IPO Listing Date
Find the dates below on basis of allotment, refund, listing, and more:
| Basis of Allotment Finalization | – |
| Refunds Initiation | – |
| Credit of Shares to Demat Account | – |
| Share Listing Date | – |
Penna Cement Industries IPO Price Band
The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed.
Penna Cement Industries IPO Equity Size
This Initial Public Issue of [●] Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.15,500 Million.
Penna Cement Industries IPO Share Offering
Fresh Issue: The Fresh Issue of [●] Eq Shares by their Company, aggregating to Rs.13,000 Million,
Issue Size: [●] Eq Shares of Rs.10 each, aggregating to Rs.15,500 Million
Offer for Sale: Offer for sale consists of Up to [●] Eq Shares of the face value of Rs.10 each, aggregating Rs.2,500 Million.
Penna Cement Industries IPO – Live Performance
The listing date of this IPO is [●]. You can check the live performance of the IPO here, only after it is listed on exchanges.
Penna Cement Industries IPO Grey Market Premium
The Penna Cement Industries Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
Penna Cement Industries Limited – Company Overview
Penna Cement Industries Limited was originally incorporated as Penna Cement Industries Private Limited in 1991 under the provisions of the Companies Act, 1956. This company is one of the largest privately held cement companies in India in terms of cement production capacity.
They have four integrated manufacturing facilities and two grinding units spread across the states of Andhra Pradesh, Telangana, and Maharashtra, with an aggregate cement production capacity of 10.00 million tonnes per annum (“MMTPA”) as of June 30, 2018, and they are in the process of increasing such capacity to 16.50 MMTPA which is expected to be operational by Fiscal 2021.
They are also in the process of increasing their aggregate clinker production capacity from 5.30 MMTPA as of June 30, 2018, to 10.80 MMTPA, which is expected to be operational by Fiscal 2021. Their integrated manufacturing facilities and grinding units are strategically located, with the road, railway, and sea route access to a number of markets, including Hyderabad, Amravati, Bengaluru, Chennai, Pune, Mumbai, and Cochin.
Their facilities located at Boyareddypalli, Ganeshpahad, Tandur, and Patas have dedicated railway sidings that enable transportation of clinker, cement, and coal. They have also received in-principle approval for setting up a dedicated railway siding at their Krishnapatnam unit.
The Company is promoted by P. Prathap Reddy, Pioneer Builders, and P R Cement Holdings Limited and is the guiding force behind the growth and strategic decisions of the Company.
Penna Cement Industries Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of the business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & millions) | |||
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 37,744.29 | 37,522.27 | 37,218.40 |
| Total Revenue | 25,993.50 | 21,762.53 | 21,591.22 |
| Total Expense | 23,694.00 | 21,377.81 | 21,037.06 |
| Profit After Tax | 1,520.73 | 230.24 | 851.33 |
Earnings per Equity Share (in Millions)
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Basic & Diluted | 11.36 | 1.72 | 6.36 |
From FY 2019 to FY 2021, as per the Restated Financial Statements,
- Our EBITDA and restated profit for the year have grown at a CAGR of 24.63% and 33.65%, respectively, from Fiscal 2019 to Fiscal 2021. In Fiscal 2021, our revenue from operations, EBITDA, and profit for the year were ₹ 24,763.99 million, ₹ 4,798.45 million, and ₹ 1,520.73 million, respectively.
Penna Cement Industries IPO – Promoters
The Promoters of this company are:
- P. Prathap Reddy, Pioneer Builders
- P R Cement Holdings Limited
List of Related Parties (Key Managerial Personnel)
- Puttamreddy Prathap Reddy, Chairman, and Managing Director
- Lakshmi Kantham Dabbara, Whole-time Director
- Puttam Reddy Deepthi Reddy, Non-Executive Director
- Puttamreddy Venugopal Reddy, Non-Executive Director
- Anil Kumar Kutty, Non- Executive Independent Director
- Kancherla Ravindranath, Non-Executive Independent Director
Business strategies of Penna Cement Industries Limited:
- Focus on port based logistics infrastructure and distribution, consolidate presence in south India and expanding presence in east and west India, and commence exports
- Setting up new facilities to establish a presence in north India
- Increase sales of blended cement to increase volumes and profit margins
- Improve operational efficiency and continue to implement measures to reduce costs
- Further, strengthen the sales and distribution capabilities and focus on growing the ‘Penna’ brand
Penna Cement Industries IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to [●] Equity Shares aggregating up to Rs. 15,500 million |
| Of which: | |
| Fresh Issue | Up to [●] Equity Shares aggregating up to Rs. 13,000 million |
| Offer for sale | Up to [●] Equity Shares aggregating up to Rs. 2,500 million |
| Reserved for Market Makers | Up to [●] Equity Shares of the face value of Rs. 10/- each |
| Net Issue to the Public | Up to [●] Equity Shares of the face value of Rs.10/- each |
| Of which: | |
| QIB Portion | Not more than [●] Equity Shares of the face value of Rs. 10/- each fully paid of the Company for cash at a price of Rs. [●]/- per share aggregating Rs. [●] Millions; shall be available for allocation to QIB |
| Of which | |
| Available for allocation to Mutual Funds only (5% of the QIB portion) (Excluding the Anchor Investor Portion) | [●] Equity Shares of Face Value of Rs. 10/- each |
| Balance for all QIBs including Mutual Funds | [●] Equity Shares of Face Value of Rs. 10/- each |
| Retail Investors Portion | Up to [●] Equity Shares of the face value of Rs. 10/- each (available for allotment to Retail Individual Investors of up to Rs. 2.00 Lacs) |
| Non-Retail Investors Portion | Up to [●] Equity Shares of the face value of Rs. 10 /- each (available for allocation to investors up to Rs. 2.00 Lacs) |
| Equity Shares outstanding prior to the Issue | 133,800,000 Equity Shares |
| Equity Shares outstanding after the Issue | [●] Equity Shares |
Penna Cement Industries IPO Issue Object
These are the IPO Issue Objects of the company
- Funding the Working Capital requirements of the Company:
- Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
- General Corporate Purposes
Penna Cement Industries IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- One of the market leaders in south India with a strong brand recall and extensive distribution network;
- Strategically located integrated manufacturing facilities which provide access to south, west, and east India markets;
- Access to quality raw materials and coal;
- Well-positioned to benefit from the growth in the cement industry;
- Established track record of operational and financial performance;
- Experienced promoter and management team with an established track record of the project and timely execution
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 11.36 | 13.14 | 86.48 |
| 31-Mar-20 | 1.72 | 2.16 | – |
| 31-Mar-19 | 6.36 | 8.01 | – |
Competitive Peers:
| Sr. No. | Particulars | Face Value (in Rs.) | Basic & Diluted EPS (In Rs.) | P/E Ratio | RONW in % |
| 1 | Penna Cement Industries Limited | 10 | 11.36 | NA | 13.14 |
| 2 | UltraTech Cement Limited | 10 | 201.61 | 31.58 | 14.9 |
| 3 | Shree Cement Limited | 10 | 435.35 | 65.91 | 11.7 |
| 4 | Ambuja Cements Limited | 2 | 11.91 | 25.93 | 10.4 |
| 5 | ACC Limited | 10 | 76.16 | 24.65 | 11.3 |
| 6 | Dalmia Bharat Limited | 2 | 11.61 | 130.32 | 2.1 |
| 7 | The Ramco Cements Limited | 1 | 26.00 | 37.62 | 12.1 |
| 8 | India Cements Limited | 10 | 9.18 | 17.82 | 0.9 |
| 9 | Birla Corporation Limited | 10 | 65.60 | 13.99 | 10.5 |
| 10 | J.K. Cement Limited | 10 | 62.56 | 44.61 | 16.4 |
| 11 | JK Lakshmi Cement Limited | 5 | 21.08 | 19.20 | 14.7 |
| 12 | Orient Cement Limited | 1 | 4.23 | 24.93 | 7.7 |
| 13 | Sagar Cement Limited | 10 | 12.36 | 58.83 | 2.8 |
Penna Cement Industries IPO Lead Managers
| Lead Managers |
| Edelweiss Financial Services Limited
Axis Capital Limited ICICI Securities Limited JM Financial Limited YES Securities (India) Limited |
Penna Cement Industries IPO Registrar to offer
| Registrar to the Offer |
| KFin Technologies Private Limited Selenium, Tower B Plot No – 31 and 32, Financial District, Nanakramguda Serilingampally Hyderabad 500 032 Rangareddi, Telangana India Tel: +91 40 6716 2222 E-mail: pennacement.ipo@kfintech.com Investor grievance e-mail: einward.ris@kfintech.com Website: www.kfintech.com Contact person: M Murali Krishna SEBI registration no: INR000000221 |
Other Details:
- Statutory Auditor – C. Ramachandram & Co., Chartered Accountants
- Peer Review Auditor – NA
- Bankers to the Company – NA
Penna Cement Industries IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Penna Cement Industries IPO News
News 1 – IPO ISSUE OPENS SOON (Download Prospectus)
Penna Cement Industries IPO Review FAQs
What is the Issue Size of Penna Cement Industries IPO?
The Company is making an initial public offer of NA equity shares. We vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and the net issue.
What is the Price band?
The price band for this particular IPO ranges between NA. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the Penna Cement Industries IPO Open Date?
The opening and closing dates for the IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.
What is the IPO Allotment Date?
We also have the news regarding the respective allotment dates. Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.
What is the IPO Listing Date?
Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.
Who is the Registrar of this IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of this Company?
Here are the promoters of this company – P. Prathap Reddy, Pioneer Builders, and P R Cement Holdings Limited. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is GMP of Penna Cement Industries IPO?
We have obtained the GMP of this IPO and it is NA. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Penna Cement Industries IPO good for Investment?
We have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of this Company?
We have the information of company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2020 in Millions is NA, 2019 is NA, 2018 is NA. PAT from Sep 2020 is NA.
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