IPO Dates

Important dates with respect to IPO allotment and listing

IPO Open Date

To be announced

About Company

Penna Cement Industries has filed for a Rs 15500 million IPO consisting of Rs 13000 million in fresh equities and Rs 2500 in offer for sale shares. They have been one of the prominent players in cement manufacturing for twenty-five years.

Penna Cement Industries started almost twenty-five years ago and is one of the leading players in integrated cement production. The company has a strong brand recall in southern and western India and Sri Lanka with strategically located manufacturing units and an extended distribution channel.

Penna Cement has four integrated manufacturing and two grinding facilities with an annual aggregated production capacity of 10 million tonnes as of March 31, 2021.

Penna Cement Industries Limited IPO Objective

Here are a few quick reasons why Penna Cement Industries Ltd. is going public.

  • The net proceeds will be used to fund various capital expenditures and upgrade manufacturing units. 
  • Rs 5500 million from the fresh equity sale will be used towards re-payment and pre-payment of certain borrowings.

Why should you invest in the Penna Cement Industries IPO?

  • 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.

IPO Financials

Particulars FY19 FY20 FY21
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

Know before investing

Strengths

4

  1. The company enjoys strong brand recall in southern and western Indian States, where it is one of the largest private players.

  2. Port-based strategically located manufacturing and distribution units helped establish a cost-effective and steady supply of raw materials and distribution of the finished products.

  3. The company has remained profitable since the commencement of operation.

  4. The company is well-positioned to harness the growing demand for cement in India, expected to grow at a 6-7% CAGR between 2021 and 2026.

Risks

4

  1. The Indian cement market is seasonal.

  2. They have three ongoing proceedings filed against them by the Central Bureau of Investigation.

  3. The company has incurred significant indebtedness, and its inability to repay may adversely affect future cash flow.

  4. Continuity of future cash flow depends on maintaining an uninterrupted supply of raw materials, a competitive edge, and relationships with distributors and institutional customers.

  • How to Apply in IPO
  • How to Check IPO Allotment Status
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Peer Comparison

Company EBITDA 2020
Penna Cement 648
Mangalam Cement 829
Ramco Cement 1024
India Cement 549
Birla Corporation 1071
Shree Cement 1480
Ambuja Cement 894
ACC Cement 831
Ultratech Cement 1144

Penna Cement Industries Limited IPO FAQs

What is Penna Cement Industries Limited IPO?

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.

When will the Penna Cement Industries Limited IPO allotment be available?

Details are not available.

What will be the Penna Cement Industries Limited IPO lot size?

Details are not available.

When will Penna Cement Industries Limited IPO open for subscription?

Details are not available.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for a minimum of one lot.

When will Penna Cement Industries Limited list on exchanges?

It takes ten working days from the last day of subscription to complete the listing process on the stock exchange.

How to check the allotment status of Penna Cement Industries Limited IPO?

To check the allotment status of Penna Cement Industries IPO, Angel One investors must log in to their account.

What is the size of Penna Cement Industries Limited IPO?

Details are not available.

How will I receive shares?

Your shares will get credited directly to your Demat account.

Is it necessary to approve a UPI mandate request immediately?

Approving the UPI payment is the final step of the IPO application. To complete the bidding process, you must approve the UPI payment mandate in T+1 days.

How to apply for this Penna Cement Industries IPO via the Angel One App?

Apply for Penna Cement Industries Limited IPO following the steps below.

  • Log in to your account 
  • Click on Penna Cement Industries Limited IPO from the active IPO link
  • Click on ‘Apply’
  • Complete the application process and select UPI as payment for the bid
  • Approve the payment mandate received on your UPI handle to block funds for the IPO

What is the minimum order quantity for Penna Cement Industries Limited IPO?

Details are not available.