Nuvoco Vistas shares made a weak listing on the stock exchanges, even although benchmark indices and broader markets have been trading with gains. Shares of the corporation started trading at Rs 471 apiece today, down 17.37% from the upper finish of the IPO price tag band of Rs 570 per share. With this Nuvoco Vistas became the second current listing to trade at discount on listing, immediately after CarTrade Tech. Nuvoco Vistas, the fifth biggest cement player in the nation by capacity, had entered the principal market place earlier this month to raise Rs 5,000 crore. The huge IPO of the corporation was subscribed 1.71 occasions by investors. Upon listing the market place capitalization of Nuvoco Vistas was Rs 16,822 crore.
Check live price tag: Nuvoco Vistas
The IPO of Nuvoco Vistas was completely subscribed general, on the other hand, only certified institutional investors had subscribed their portion entirely. Non-Institutional Investors (NII) and retail investors had failed to bid for the portion reserved for them. NIIs had subscribed to the IPO .66 occasions whilst the retail portion was subscribed .73 occasions. Post concern, promoters of the corporation, now hold a 71% stake in the corporation, down from 95.25% earlier. Public shareholding has enhanced to 29% from 4.76% earlier.
“We like NVCL due to its leadership position in fast-growing East market, wide premium product portfolio and ability to successfully integrate large acquisitions,” analysts at Motilal Oswal Financial Services had earlier stated. They valued the concern at $146 FY21 EV/ton (USD) and 16.6x EV/EBITDA on a post-concern basis, which they stated was at a discount to the business typical provided slightly weaker financials. “It is expected to witness strong growth going ahead led by its expansion plans, integration of NU Vista and debt reduction,” they added whilst pinning a ‘Subscribe for Long Term’ rating on the IPO.
Meanwhile, analysts at Choice Broking identified the concern to be valued at a premium to peer typical. “At higher price band of Rs 570, NVCL is demanding an EV/EBITDA multiple of 18.2x, which is at a premium to peer average of 15.2x,” they stated. However, in spite of this, taking into consideration the revival of true estate sector along with a host of other variables, the brokerage firm assigned a ‘Subscribe for Long Term’ rating on the concern.