Nirma group cement business Nuvoco Vistas Corporation Ltd IPO will open for subscription on Monday, 9 August, at a cost band of Rs 560-570 per share of face worth of Rs 10 every. The concern will close on Wednesday, 11 August. Nine years ago Nirma shares had been delisted from exchanges. The Rs 5,000 crore public concern comprises a fresh concern of shares worth Rs 1,500 crore and an supply for sale (OFS) of Rs 3,500 crore by its promoter entity Niyogi Enterprise Pvt. Ltd. Niyogi Enterprises holds an 86.56 per cent stake in the business.
Investors can make bids for a minimum of 26 equity shares and in multiples thereafter, implying a minimum investment of Rs 14,820 per lot. Half of the net supply has been reserved for certified institutional purchasers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Upon thriving completion of its IPO, it will join the business-listed peers such as Ultratech Cement, Shree Cement, Ambuja Cements and ACC. ICICI Securities Ltd, Axis Capital, HSBC Securities and Capital Markets India, JP Morgan India and SBI Capital Markets are the lead managers to the concern. Link Intime India Private Ltd is the registrar to the concern.
The typical business P/E ratio stands at 35.90x, although the weighted typical return on net worth for the last 3 fiscals is 1.31 per cent. The business has planned to utilise the net proceeds from the concern for the repayment/prepayment/redemption, in complete or aspect, of particular borrowings availed of by the business which is about Rs 1,350 crore and for common corporate purposes. Nuvoco Vistas is the fifth-biggest player in India and the biggest cement business in East India, in terms of capacity, with a consolidated capacity of 22.32 MMTPA. It has 11 cement plants, comprising 5 integrated units, 5 grinding units and one blending unit.
Nuvoco Vistas’ competitors from domestic cement organizations which operate in the Indian industry, incorporate UltraTech Cement Limited, Shree Cement Limited, Birla Corporation Limited, Dalmia Bharat Cement Limited, Ambuja Cement Limited and other regional players like Wonder.