Hyderabad based Penna Cement has started the paper works to launch an IPO. The company submitted papers to SEBI stating that they are planning to raise Rs 1,550 crore through an initial share sale.
The IPO (initial public offer) is a combination of fresh issue of equity shares worth Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the promoter, according to the draft red herring prospectus.
The amount raised through fresh issue shares will be first used to pay the debts of Rs 550 crore. After which Rs 80 crore will be used towards upgradation of their raw grinding and cement mill in Talaricheruvu and Rs 105 crore will be utilised for funding capital expenditure requirements for its KP Line II Project.
In the remaining amount, the company will use Rs 130 crore and Rs 110 crore towards setting up a waste heat recovery plant in Tandur and Talaricheruvu respectively.
This will be the company’s second attempt at launching their IPO. Last time they tried this in November 2018, when they had filed draft papers with SEBI to float Rs 1,550-crore initial share-sale and had received its clearance too. However, the eminent player did not launch the IPO.