Nuvoco Vistas IPO: Subscription for this Nirma group company closed yesterday and ₹5,000 crore public issue got subscribed 171 per cent or 1.71 times of its initial offer. While bidders are anxiously waiting for the Nuvoco Vistas IPO allotment date i.e. 17th August 2021, grey market is also started giving its vibes in regard to this public issue. According to market observers, Nuvoco Vistas IPO GMP today is ₹15 that indicates risk involved in this initial offer for the bidders. Market observers said that Nuvoco Vistas shares have been trading at a premium of ₹10 to ₹15 for the last 5 days that indicates taht the public issue may end up listinga t around its issue price. However, stock market experts maintained that GMP is not an official data and bidders should look at the financials of the company, which is largest cement manufacturer in East India in terms of total capacity with market-lending brands.
- Nuvoco Vistas IPO GMP: The Nirma group company shares are trading at a premium of ₹15 in the grey market. This simply means grey market is expecting listing gain to the tune of 2.5 per cent from this public issue. Market observers said that Nuvoco Vistas IPO grey market premium has been oscillating around ₹10 to ₹15 for the last 5 days, which is not a good sign, especially when it has received 171 per cent subscription on its initial offer. They said that the IPO is highly risky and may end up around its issue price if the GMP doesn't rise by its allotment date.
- Nuvoco Vistas IPO allotment date: The tentative date for share allocation of the Nirma group IPO is 17th August 2021.
- Nuvoco Vistas IPO subscription status: The cement manufacturer company has been subscribed 1.71 times of its initial offer.
- Nuvoco Vistas IPO listing: Nuvoco Vistas shares will be listed at both NSE and BSE.
- Experts' view: Speaking on the fundamentals of Nuvoco Vistas; Astha Jain, Research Analyst at Hem Securities said, "Company is bringing the issue at price band of ₹560-570 per share at post issue EV/EBIDTA multiple of 16 on FY21 EBIDTA basis. Company being largest cement manufacturing company in East India in terms of total capacity with market-leading brands and experienced individual promoter and professional management team has strong future potential."
Speaking on the strong financials supporting Nuvoco Vistas IPO; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the FY-21 adjusted EBITDA of ₹1,460.5 crore on post issue basis, the company is going to list at an EV/EBITDA of 17.54 with a market cap of ₹20,357.9 crore while its peers namely Ultratech Cement and Shree Cement are trading at an EV/EBITDA of 21.00 and 26.15 respectively. Also, it is available at reasonable valuation as compared to its peers."
