India’s Penna Cement has received approval from the Securities and Exchange Board of India for its INR15.5bn (US$206.56m) initial public offering.

The IPO includes a fresh issue of INR13bn and an offer for sale of up to INR2.5bn by promoter PR Cement Holdings, which holds a 33.41 per cent stake in the company.

The fresh capital is expected to be used for the repayment of borrowings and to fund an expansion project.