Penna Cement Industries Limited IPO

Penna Cement is one of the largest privately held cement companies in India, with an installed cement capacity of 10 Million Tonnes Per Annum. Founded in 1991, Penna Cement has established itself as one of the most trusted cement brands, with significant footprints in southern and western India. The company’s clientele ranges from small house owners to organised real estate developers and from various state governments to global construction majors.

The company plans to raise Rs 1550 crore from the IPO. 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. Currently, PR Cement Holdings holds a 33.41 percent stake in the company.


Penna Cements intends to utilise part of the fresh issue funds:


  • For repaying of debt (Rs 550 crore)
  • Capital expenditure requirements (Rs 105 crore) for its KP Line II Project.
  • Rs 80 crore will be used for upgrading raw grinding and cement mill in Talaricheruvu
  • Rs 110 crore and Rs 130 crore will be utilised for setting up a waste heat recovery plant in Talaricheruvu and Tandur, respectively


Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Listing at NSE, BSE

IPO Open Date To be announced
IPO Close Date To be announced
Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat Account
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

IPO Financials

Particulars 2019 2020 2021
Revenue From Operation 21,561.81 21,676.14 24,763.99
Profit 851.33 230.24 1,520.73
EBITDA 3089.48 3383.61 4798.45
EBITDA Margin (%) 14.33 15.61 19.38
EPS 11.36 1.72 6036

How to apply in IPO via UPI on Dynami

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Why should you invest in the Penna Cement Industries IPO?

Below are your top reasons:

  • The company has plans for future expansion in the north and central Indian markets and to promote blended cement sales.
  • A plan is underway to increase production capacity from 10 MMTPA to 16.50 MMTPA.
  • They have a stable and cost-effective supply chain for acquiring raw materials, including strategically located port-based logistic infrastructure for efficient and reliable distribution.
  • They have 3,310 dealers and distributors in India as of March 31, 2021, and established long-term, stable relationships with institutional customers.
  • The blended cement segment is expected to grow 8-9% CAGR between 2021 and 2026.

Know before investing

Strengths Risks
Strategically located integrated manufacturing facilities and packing terminals which provide access to south, west and east India markets Dependency upon the pricing and continued supply of coal a nd raw materials, the costs and supply of which can be subject to significant variation due to factors outside control
Access to quality raw materials and coal Roposed capacity expansion plans relating to facilities are subject to the risk of unanticipated delays and cost overruns
One of the market leaders in south India with a strong brand recall and extensive distribution network Limited experience in port based logistics, which is subject to the risk of accidents and rough weather on the high seas

How to apply for Penna Cement Industries Limited IPO ?

Retail investors need to apply for the IPO using UPI

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for Penna Cement Industries Limited IPO and approve the payment on your UPI ID.

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  • If you’re a new investor, open an Dynami Demat account for free and begin your investment journey.

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Frequently asked questions

  • An IPO also known as initial pulic offering or stock launch is a process when a private company sale its shares to public for the first time. Learn more about IPO at our knowledge centre.

  • Penna Cement industries has filed the preliminary papers for a Rs 1550 crore IPO. It will be a mix of new scrips and offer for sale equities from promoters.

  • A lot size is the minimum number of shares that an investor has to bid for. A lot size differs for each IPO and is fixed by the company.

  • IPO Price Band is the price range within which investors can bid for the shares. The minimum price is called the floor price and the maximum price is called the cap price.

  • Issue size is the total value of an IPO. It is calculated by multiplying the number of shares offered by the company by the issue price per share.

  • You will receive an email on your registered email id if the IPO shares are allotted to you. Alternatively, you can also visit the registrar of the company’s official website and provide the details as asked in the allotment status section of the website.

  • IPOs, as such, do not have any taxes. You are taxed only when you decide to sell the IPO shares. Any monetary profit you make while selling the IPO shares is referred to as 'capital gains'.

    Capital gains tax is charged depending on how long you held the shares for. If you owned the shares for less than 12 months, it is considered as short-term capital gains and if it is over 12 months, it is referred as long-term capital gains.

    Tax on short-term capital gains is 15%. It is 10% for equity gains in the long run (over 12 months). Do remember that you are taxed if the equity proceeds exceed Rs 1 lakh.