Nuvoco Vistas IPO Review 2021: With 4 IPOs lined up this week, investors are once again in for a ride. Nuvoco Vistas Ltd IPO will hit the Indian markets from August 9th to August 11th. They aim to raise Rs. ₹5000 crores through a public offering.
In this article, we look into important information on the Nuvoco Vistas IPO and find out the possible prospects of the company. Keep reading!
Table of Contents
Nuvoco Vistas IPO Review – About the Company
Founded in 1999, Nuvoco Vistas Ltd is part of the Nirma group of companies. Nuvoco Vista is the largest company in East India in terms of capacity and the 5th largest cement company in India.
The company also offers a good range of over 50 products. These include cement, Ready-mix Concrete (RMX), adhesives, wall putty, dry plaster, cover blocks, etc.
The Nirma group entered the cement business in 2014. Over the years the company has used several inorganic means to further boost its growth of the company.
The company acquired the Indian cement business of LafargeHolcim in 2016 and NU Vista in 2020. In February 2020 the merger between Nirma and Nuvoco Vistas was completed.
Nuvoco Vistas has a large distribution network of 15,969 dealers and 225 CFA’s. The company has 11 plants with an installed capacity of 22.32 million tonnes per annum.
They are located across the states of West Bengal, Bihar, Odisha, Chhattisgarh, and Jharkhand in East India and Rajasthan and Haryana. They have 49 RMX plants making them one of the leading ready-mix concrete manufacturers.
The company also has waste heat recovery systems installed at its plants. These have a capacity of 44.7 MW.
In addition to these, the company has solar power plants with a total capacity of 1.5 MW and captive power plants with a generation capacity of 105 MW. These meet 50% of the company’s power requirements.
Grey Market Premium (GMP) of Nuvoco Vistas
The shares of Nuvoco Vistas traded at around a 7% premium in the grey market before the IPO. The shares traded at a price of Rs.600 – Rs.610 giving them a premium of Rs. 40 over their issue price band of Rs 560-Rs. 570 per share.
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Nuvoco Vistas IPO Review – Key IPO Information
The promoters of the company are Niyogi Enterprises Pvt Ltd and Dr. Karsanbhai K Patel. They have appointed Axis Capital Ltd., HSBC Securities & Capital Markets Pvt Ltd, ICICI Securities Ltd., J.P. Morgan India Pvt. Ltd., and SBI Capital Markets Ltd as the lead managers to the issue.
Link Intime India Pvt Ltd has been appointed as the registrar to the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹5,000.00 Cr |
| Fresh Issue | ₹1,500.00 Cr |
| Offer For Sale(OFS) | ₹3,500.00 Cr |
| Opening Date | Aug 9, 2021 |
| Closing Date | Aug 11, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | ₹560 to ₹570 per equity share |
| Lot Size | 26 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Aug 23, 2021 |
Purpose of the Nuvoco Vistas IPO
The proceeds from the IPO will be used for:
- To repay borrowings of the company.
- General corporate purposes.
In Closing
The IPO opens on 9th August and closes on 11th August 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Nuvoco Vistas Ltd.
That’s all for this post. Do let us know what you think of the Nuvoco Vistas Ltd IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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