Nirma group cement business Nuvoco Vistas Corporation Ltd has filed draft red herring prospectus with capital markets regulator SEBI to launch an IPO worth Rs 5,000 crore. The concern will comprise a fresh concern of shares of up to Rs 1,500 crore and an give-for-sale (OFS) of up to Rs 3,500 crore by its promoter promoting shareholder Niyogi Enterprise Private Ltd which holds 86.56 per cent stake in the business. Nine years ago Nirma shares have been delisted from exchanges. Billionaire Karsanbhai Patel founded Nirma Group, his son Hiren Patel is at present the chairman of Nuvoco Vistas.
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The book operating lead managers to Nuvoco Vistas Corporation concern are ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India) Private Ltd, JP Morgan India Private Ltd, and SBI Capital Markets Ltd. The registrar to the concern is Link Intime India Private Ltd. Upon listing, Nuvoco Vistas Corporation will join the likes of Ultratech Cement, Shree Cement, Ambuja Cements and ACC Ld. The highest business P/E ratio stands at 61.91, the lowest business P/E ratio is 23.05 and the typical business P/E ratio is 35.46. The business has planned to utilise the net proceeds from the concern for the repayment/prepayment/redemption, in complete or component, of particular borrowings availed of by the business which is about Rs 1,350 crore and for common corporate purposes.
Nuvoco Vistas reported a net loss of Rs 63.4 crore and Rs 26.4 crore in the nine month period ended December 31, 2020 and Fiscal 2019 respectively. Nuvoco Vistas’ organization, economic situation and outcomes of operations have been and might continue to be materially adversely impacted by the COVID-19 pandemic. The business stated that the not too long ago enacted Mines and Minerals (Development and Regulation) Amendment Act, 2021 might outcome in lapsing of letters of intent for the grant of mining leases beneath Section 10A of the MMDR Act. In addition, the Amendment Act might also effect the continuity of particular non-operating mining leases.
Nuvoco Vistas is the fifth biggest cement business in India in terms of capacity with a consolidated capacity of 22.32 MMTPA. According to a CRISIL report, the cement demand in India is anticipated to develop at a CAGR of 6% to 7% from fiscal 2021 to fiscal 2026. Nuvoco Vistas’ competitors from domestic cement providers which operate in the Indian marketplace, consist of UltraTech Cement Limited, Shree Cement Limited, Birla Corporation Limited, Dalmia Bharat Cement Limited, Ambuja Cement Limited and other regional players like Wonder. The business stated that its cement merchandise are sold to the trade segment (which is primarily to person home purchasers by means of their distribution network) and the non-trade segment (which is primarily direct sales to institutional and bulk purchasers).