Nuvoco Vistas Corporation Ltd, portion of the Nirma Group, has received capital markets regulator Sebi’s go-ahead to raise Rs 5,000 crore by means of an initial share sale.
The Initial Public Offer (IPO) comprises fresh problem of shares worth Rs 1,500 crore and an present for sale of Rs 3,500 crore by promoter Niyogi Enterprise, according to the Draft Red Herring Prospectus (DRHP). Nuvoco Vistas, which filed preliminary IPO papers with Sebi in May, obtained its observations on July 16, an update obtainable with the regulator showed on Monday.
Sebi’s observation is important for any corporation to launch public difficulties like initial public present, adhere to on public present and rights problem.
As per the DRHP, proceeds of the fresh problem will be used to repay particular loans availed by the corporation and for common corporate objective.
Nuvoco Vistas is a cement manufacturer with a consolidated capacity of 22.32 MMTPA. It has 11 cement plants comprising 5 integrated units, 5 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 obtain the 8.3 million tonne per annum cement business enterprise of Emami for an enterprise worth Rs 5,500 crore. The deal was authorized by Competition Commission of India (CCI) in May 2020.
ICICI Securities, Axis Capital, JSBC Securities and Capital Markets (India) Private Limited J P Morgan India and SBI Capital Markets are the merchant bankers to the IPO. Equity shares of the corporation will be listed on the BSE and NSE.
Founded by Karsanbhai Patel, Nirma Limited is a diversified group with organizations across industrial and customer solutions ranging from soaps and detergents, salt, soda ash, caustic soda and other chemical substances. The corporation was delisted from the stock exchanges, BSE and NSE, in 2011.