The Indian stock market place will see the listing of Nuvoco Vistas on Monday, 23 August, followed by Aptus Value Housing Finance India and Chemplast Sanmar on Tuesday, 24 August. The Rs 5,000-crore Nuvoco Vistas IPO got 1.71 instances subscription, and was accessible at a value band of Rs 560-570 per share. In the major market place, Nuvoco shares had been seen trading at discount to IPO value. Nuvoco shares had been trading at Rs 556, a discount of 2.5 per cent in the grey market place, more than the challenge value, according to the folks who deal in unlisted shares of the firms.
Upon productive listing, Nuvoco will join the market-listed peers such as Ultratech Cement, Shree Cement, Ambuja Cements and ACC. Analysts say that with correction in major and secondary markets, the spree of dull listings continues on the street. “Nuvoco Vistas may follow the same trend and chances of discount listing cannot be denied. At 17x EV/EBITDA, the issue looks fully priced leaving nothing on table for investors in short term,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online. The challenge looked unattractive from the starting and the current listing events additional dampened the sentiments.
Nuvoco Vistas, a Nirma group cement enterprise, has 11 cement plants comprising 5 integrated units, and grinding units every single and one blending unit. It operates cement manufacturing units in Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana. Analysts at Hem Securities anticipate a flat listing on Monday. “Investors should book partial profit in case if stock is available at premium to listing price on debut day while they can keep it for long term as company being largest cement manufacturing company in East India in terms of total capacity with market-leading brands & experienced individual promoter and professional management team has strong future potential,” Astha Jain, Senior Research Analyst, Hem Securities, mentioned.
Nuvoco is the fifth biggest cement player in the nation by capacity. It is one of the market place leaders in East India which tends to make cement and modern day constructing components like adhesives and dry plaster. “Although the issue may not give hefty listing gains to the investors, it can turn out to be a good long term play given the company’s strong brand value, robust growth in capacity addition, good visibility for cement companies due to focus on infra, reduction in debt and improvement in margins and profitability,” Likhita Chepa, Senior Research Analyst at CapitalBy way of Global Research, told TheSpuzz Online. She added that investors can think about holding it with a medium to lengthy-term viewpoint.
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