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The cement arm of Nirma Group, Nuvoco Vistas Rs 5,000 crore IPO (initial public offer) will open for subscription on Monday, August 09. Here are all the details
Open and close date: The offer will open for subscription on August 9 and the bidding will close on August 11. The anchor book, if any, will open for a day before the issue opening, i.e. August 6.
Price band: The price band for the cement company has been fixed at Rs 560-570 per share having a face value of Rs 10 per share.
Lot size: Investors can bid for a minimum of 26 equity shares and in multiples thereafter, translating to a minimum bidding amount of Rs 14,820 at the higher end of the price band. A retail investor can at max apply for 13 lots or 338 shares for Rs 1,92,660.
Issue size: The Rs 5,000-crore public offer comprises fresh issuance of equity shares of Rs 1,500 crore and an OFS (offer for sale) of Rs 3,500 crore by its promoter entity Niyogi Enterprise. Niyogi Enterprises holds an 86.56% stake in the company.
The objective of the issue: The cement manufacturer will utilise its net proceeds from the fresh issues towards repayment of borrowings and general corporate purpose.
What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.
About the company: Nuvoco Vista Corporation Ltd, a part of Nirma Group Company is among one of the largest cement companies and concrete manufacturers in India. It offers a diversified range of products such as cement, Ready-mix Concrete (RMX), and modern building materials i.e. adhesives, wall putty, dry plaster, cover blocks, and more.
The company’s plants are located in the states of West Bengal, Bihar, Odisha, Chhattisgarh, and Jharkhand in East India and Rajasthan and Haryana in North India with an aggregated installed capacity of 22.32 MMTPA (million metric tonnes per annum).
On the financial front, the company reported total revenue of Rs 7,522.69 crore compared to Rs 7,105.89 crore in FY19. Companies bottom line is in the red as it reported a net loss of Rs 25.92 crore versus a loss of Rs 26.49 crore during the same period. However, the company had posted a profit of Rs 249.26 crore in FY20.
Book running lead managers and registrar to the IPO: The book running lead managers to the issue are Axis Capital, HSBC Securities, and Capital Markets India, JP Morgan India, and SBI Capital Markets. The registrar to the issue is Link Intime.
Issue timeline: The issue is likely to finalize the basis of allotment by August 17, and the initialization of refunds will take place by August 18. While the credit of equity shares to depository accounts of the allottee will be done on August 20. The company is expected to make its stock market debut on August 23, 2021.