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Penna Cement Company Details
Penna Cement is one of the largest privately held cement companies in India and a leading integrated cement player in terms of cement production capacity, as of March 31, 2021, with a strong brand recall in the southern and western states of India.
Penna Cement has 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 MMTPA as of March 31, 2021, and it is in the process of increasing its capacity to 16.50 MMTPA, which is expected to be operational by Fiscal 2024. Penna Cement is also in the process of increasing its aggregate clinker production capacity from 7.80 MMTPA as of March 31, 2021 to 10.80 MMTPA, which is expected to be operational by Fiscal 2024 . As of March 31, 2021, its cement and clinker production capacity represented 5.5% and 6.3%, respectively, of the total cement production and clinker production capacity, respectively, in south India, comprising Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Andaman and Nicobar Islands, and Pondicherry
Its integrated manufacturing facilities and grinding units are strategically located,
with road, rail and sea access to a number of markets in the southern, eastern and western regions of India as well as Sri Lanka.
It has strategically focused on developing port-based logistics infrastructure to ensure efficient, reliable and cost-effective distribution. It has commissioned one of the largest port based cement facilities in India at Krishnapatnam , with an automated ship-loading facility as well as packing terminals at the Cochin, Gopalpur and Karaikal ports. It also acquired Singha Cement (Private) Limited, a Sri Lankan cement company, in May 2019 that operates a packing terminal in Colombo, Sri Lanka , and are further in the process of setting up an additional port-based packing terminal at Kolkata .
In order to further bolster its port-based distribution strategy, it acquired a self-discharging cement carrying vessel with a maximum cargo capacity of 25,500 tonnes. It believes that the strategic location of its various facilities, packing terminals and its port based logistics infrastructure provides it with several competitive advantages, including (i) providing strategic access to south, west and east India; (ii) enabling us to cost-effectively target markets in east, south and west India, including Kolkata, Bhubaneswar, Cuttack, Cochin, Pune and Ahmednagar; and (iii) export of cement to Sri Lanka and export of clinker to Bangladesh.

Its port based logistics infrastructure enables it to manage cost efficiencies in the transportation of its cement and clinker products to new markets as well as in the procurement of imported coal through the ports. Further, it distributed 10.69%, 7.18% and 8.26% of its cement products through rail, 84.36%, 80.62% and 78.81% of our cement products through road, and 4.95%, 12.22% and 12.93% of its cement products through sea in Fiscals 2019, 2020 and 2021, respectively .Its cement products include ordinary portland cement ,Portland pozzolana cement and portland slag cement. It markets and sells its products under the Penna brand, and have a proven operational excellence of 25 years
Some of the qualitative factors which form the basis for computing the Offer Price are:
• One of the market leaders in south India with a strong brand recall and extensive distribution network;
• Strategically located integrated manufacturing facilities and packing terminals 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;
• Experienced promoter and management team with an established track record of project and timely execution
For more study : www.pennacement.com

The promoters of Penna Cement
P.Prathap Reddy , Pioneer builders & P R Cement Holdings ltd
.
Penna Cement IPO Main Objects
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:
1. Repayment/pre-payment, in full or part, of certain borrowings availed by the Company;
2. Funding of capital expenditure requirements of the Company towards the KP Line II project;
3. Funding of the capital expenditure requirements of the Company towards upgrading the raw grinding and cement mill at Talaricheruvu;
4. Funding of capital expenditure requirements of the Company towards setting up the waste heat recovery plant (“WHR Plant”) at Tandur;
5. Funding of capital expenditure requirements of the Company towards setting up the WHR Plant at Talaricheruvu

Penna Cement IPO Details
IPO Opens on : ? 2021
IPO Closes on : ? 2021
Issue Type: Book Built Issue IPO
Issue : Up to [•] Equity Shares aggregating up to Rs 1550 Crore
Fresh issue up to Rs 1300 Crore
Offer for Sale Up to Rs 250 crore
IPO Size : Rs. ? Cr
Face Value per share : Rs. 10

Penna Cement IPO Price Band Per Equity Share: Rs. ??
Penna Cement IPO Lot Size ? Shares
Penna Cement Listing will at BSE,NSE

Shares offered to
Anchors ? Shares = INR ? Crs
QIB ? Shares = INR ?Crs
NII ? Shares = INR ?Crs
RII ? Shares = INR ?Crs
Lot size: ? = ? Forms

Penna Cement IPO Tentative timeTable
Price Band announced
Penna Cement IPOAnchor List
Penna Cement IPO Opens on
Penna Cement IPO Closes on
Penna Cement IPO Allotment on
Unblocking of ASBA
Credit to Demat Accounts
Penna Cement Listing on

Penna Cement IPOLtd Financial Details :
Earnings per Share 2018-19 Rs 6.36
Earnings per Share 2019-20 Rs 1.72
Earnings per Share 2020-21 Rs 11.36
Book Value of the Share as on 31.3.2021 Rs 86.48
Return on Net Worth: 18-19 8.01 %
Return on Net Worth: 19-20 2.16 %
Return on Net Worth: 20-21 13.14 %
Upper Price Band/last EPS:
Upper offer price/Book Value Ratio:
Equity Shares outstanding prior to the Offer 133,800,000 Equity Shares
Equity Shares outstanding after the Offer ? Equity Shares

Penna Cement IPO Peer Comparison:
UltraTech Cement @ PE Multiple of 31.58
Shree Cement @ PE Multiple of 65.91
Ambuja Cements @ PE Multiple of 25.93
ACC @ PE Multiple of 24.65
Dalmia Bharat @ PE Multiple of 130.32
The Ramco Cements @ PE Multiple of 37.62
India Cements @ PEMultiple of 17.82
Birla Corporation @ PE Multiple of 13.99
J.K. Cement @ PE Multiple of 44.61
JK Lakshmi Cement @ PE Multiple of 19.20
Orient Cement @ PE Multiple of 24.93
Sagar Cement @ PE Multiple of 58.83

Penna Cement IPO Lead Managers
Edelweiss Financial Services
Axis Capital
ICICI Securities
JM Financial
Yes Securities

Registrar to Penna Cement IPO
Kfin Technologies Private Limited

Registered Office of Penna Cement
H.No. 8-2-268/A/1/S & S1,
Plot No. 705, Road No. 3,
Banjara Hills,
Hyderabad 500 034,
Company Secretary and Compliance Officer
Raj Kumar Singh

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