IPO

Nuvoco Vistas IPO: Dates, Details & Overview 3 min read

August 9, 2021 3 min read
Nuvoco IPO

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Nuvoco Vistas IPO: Dates, Details & Overview 3 min read

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Nuvoco Vistas, a major cement and manufacturing company based in East India will join the rally of IPOs this week. The company will make its debut on the Dalal street with its Rs.5,000 crore IPO. The company’s issue comprises Rs. 1,500 crore worth of fresh shares and Rs. 3,500 crore offer for sale (OFS) by promoters. 

Face Value of each share is Rs. 10 per and the Price Band fixed per share will range between Rs. 560 to Rs. 570.

The minimum bid lot is 26 equity shares and in multiples of 26 equity shares thereafter. Retail investors can make a minimum investment of Rs. 14,820 per lot, and a maximum investment of Rs. 1,92,660 for 13 lots.

Half of the offer is reserved for allocation to qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail individual investors.

Know About the Company

Nuvoco Vistas is among one of the largest cement companies and concrete manufacturers in India. It offers a diversified range of products such as cement, Ready-mix Concrete (RMX), and modern building materials i.e. adhesives, wall putty, dry plaster, cover blocks, and more.

The company sells its products in the trade segment (individual home buyers) and non-trade segment (institutional and bulk buyers). It has a strong distribution network with 15,969 dealers and 225 CFAs.

Its cement plants are located in the states of West Bengal, Bihar, Odisha, Chhattisgarh, and Jharkhand in East India and Rajasthan and Haryana in North India with an aggregated installed capacity of 22.32 MMTPA.

Here’s the Event Calendar

Nuvoco IPO

Objective of the Offer

  1. The company plans to utilise the Net Proceeds of the fresh offer towards the repayment/prepayment/redemption, in full or part, of certain borrowings availed of by the company in the past. 
  2. For general corporate purposes. 
  3. Further, the Company expects that listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to its Shareholders and will also provide a public market for the Equity Shares in India.

Important Financial Data

During FY19-FY21, Nuvoco Vistas Corporation’s revenues grew at a CAGR of 3 percent, and operating profit at 26 percent CAGR. It reported a loss of Rs. 26 crore each in FY19 and FY21 but posted a profit at Rs. 249 crore in FY20.

Nuvoco IPO

 Strengths

  1. The company is one the largest cement manufacturing company in East India in terms of total capacity.
  2. It’s one of the market leading brands that establish and enhance the leadership as a building materials company with strong brand recognition;
  3. It has a strategically located cement production facilities that are in close proximity to raw materials and key markets;
  4. The company has a proven track record of extensive sales, marketing and distribution network with diversified product portfolio.
  5. The company has a strong research and development and technological capabilities.
  6. They have an experienced Individual Promoter and professional management team.

Risks

  1. The company’s business, financial condition and results of operations have been and may continue to be materially adversely affected by the COVID-19 pandemic.
  2. There is a strong dependence upon its ability to mine/ procure sufficient limestone for the operations and business
  3. The company depends upon the continued availability of coal, water, labour and raw materials used in the production of cement, the costs and supply of which can be subject to significant variation due to factors outside our control.
  4. An inability to effectively manage the growth and expansion may have a material adverse effect on its business prospects and future financial performance.
  5. The company’s inability to effectively integrate the operations with its acquisitions and achieve operational efficiency may not yield timely or effective results, which may affect the financial condition and results of operations.
  6. The company may not be able to comply with repayment and other covenants in the financing agreements could adversely affect the business and its finances.

Sources: RHP, BLRM

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