IPO Alert: Nuvoco Vistas Corporation opens on 9 August 2021

As the economic activity picks pace, the demand for construction materials is expected to rise. And cement producers like IPO-bound Nuvoco Vistas Corporation could be the beneficiaries of this economic revival. We bring you all the key details about this latest public issue.   

Key details

• IPO size: ₹5,000 crore
• Fresh issue: ₹1,500 crore
• Price band: ₹560–₹570 per share
• Lot size: 26 shares
• Cost per lot: ₹14,820
• Issue opens: 9 August 2021
• Issue closes: 11 August 2021 
• Basis of allotment date: 17 August 2021 
• Initiation of refunds: 18 August 2021
• Credit of shares to demat account: 20 August 2021
• Expected listing date: 23 August 2021

About Nuvoco Vistas Corporation

Incorporated in 1999, Nuvoco Vistas Corporation (NVCL) is the fifth-largest cement company in India and the biggest in the eastern India in terms of production capacity. 

The company has 11 cement plants in east and north India with a total production capacity of 22.3 million metric tonnes per annum (MMTPA). In fact, it is one of the fastest-growing cement makers in terms of capacity addition. Its production capacity accounts for around 17% of the total cement production capacity in east India. The company is also one of the leading ready-mix concrete (RMX) manufacturers in India with 49 RMX plants. 

It sells its cement through the distribution channels as well as the direct route. The company has 244 agents and 16,076 dealers. 

Its revenue has grown at a CAGR of 3% between FY19 and FY21. Out of these three financial years, the company has posted losses in two. As of March 2021, the company’s net debt stood at ₹6,730 crore with a debt to equity ratio of 0.9x.    

About the issue

The IPO size is ₹5,000 crore. Of this, the fresh issue is ₹1,500 crore and the remaining ₹3,500 crore consists of an offer for sale. The company plans to use ₹1,350 crore raised through the fresh issue to repay debt. 

IPO allocation quota

To know more about the IPO, read its red herring prospectus here. The issue opens on 9 August 2021 and you can subscribe to Nuvoco Vistas Corporation with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!