Cement manufacturer Nuvoco Vistas Corporation, part of the Nirma Group, will launch its initial public offering (IPO) today and the three-day issue will conclude on August 11. The firm has has fixed its initial public offering (IPO) price at ₹560-570 a share. The company has raised ₹1,500 crore from anchor investors ahead of its initial share sale.
The IPO comprises fresh issue of shares worth ₹1,500 crore and an offer for sale (OFS) of ₹3,500 crore by promoter Niyogi Enterprise. Nuvoco Vistas grey market premium (GMP) are around ₹20, as per market observers.
Proceeds of the fresh issue will be used to repayment of certain loans availed the company and general corporate purpose. ICICI Securities Ltd, Axis Capital, HSBC Securities and Capital markets India, JP Morgan India and SBI Capital Markets are the lead managers to the issue.
Nuvoco Vistas is a cement manufacturer with a consolidated capacity of 22.32 million metric tonnes per annum (MMTPA). It has 11 cement plants comprising five integrated units, five grinding units and one blending unit. It operates cement manufacturing units in Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana.
Nuvoco Vistas, formerly Lafarge India Limited, in February 2020 announced that it will acquire the 8.3 million tonne per annum cement business of Emami for an enterprise value ₹5,500 crore. The deal was approved by Competition Commission of India (CCI) in May 2020.
''NVCL’s plants are located at various strategic locations in east and north India. They have three integrated units and five grinding units in East India, and two integrated units and one blending unit in North India. These locations allow them to effectively sell their products in East and North India as well as access to select key markets in Central India. They are also in the process of enhancing their cement capacity in their existing grinding units in Jojobera Cement Plant and Bhabua Cement Plant in East India. The connectivity to raw materials and their customers allows them to manufacture and sell their cement products in a cost-efficient manner,'' ICICI Direct said in a note.
