Nuvoco Vistas Corp. IPO: All You Need To Know
Nuvoco Vistas Corp. will sell shares at Rs 560-570 apiece in its three-day initial public offering starting Aug. 9 as the cement maker joins other Indian companies in raising funds during a record year for maiden offers.
The company is seeking valuation of Rs 20,357 core at the upper end of its price band. The Rs 5,000-crore IPO comprises a fresh issue of 8.8 crore shares amounting to Rs 1,500 crore and an offer-for-sale worth Rs 3,500 crore by the promoter—Niyogi Enterprise Pvt., part of the Nirma group—which will use the proceeds to pare debt.
The issue constitutes 24.6% of the post-issue equity capital and promoter's stake will stand at 71% after the initial share sale.
ICICI Securities, Axis Capital, HSBC, JP Morgan and SBI Capital Markets are the book running lead managers.
Issue Duration: Aug. 9-11.
Issue Size: Up to Rs 5,000 crore.
Face Value: Rs 10 per share.
Lot Size: 26 shares and multiples.
Listing: BSE and NSE.
Watch the interaction with the company here:
The company plans to use the IPO's proceeds to pare debt to the tune of Rs 1,350 crore. It had total borrowings of Rs 7,642 crore as on March 31.
Nuvoco Vistas is largest cement manufacturer in East India and India's fifth-largest in terms of capacity. At 22.32 million tonnes per annum, it has 4.2% of the industry's capacity.
The company also has clinker capacity amounting to 11.58 MTPA. It produced 16.80 MTPA of cement and 9.70 MTPA of clinker in the year ended March 2021.
It operates eight plants in East India and three in North India. Its cement plants are in West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in the east, and Rajasthan and Haryana in the north. Its ready-mix concrete plants are located across India.
These locations allow the company to effectively sell in East and North India and select key markets in central part of the country.
In FY21, its trade segment comprised 73% of total sales, with the non-trade segment making up the remainder.
The company ended FY21 in a loss amid Covid-19-led disruptions. Its key metric of operating profit per tonne declined on the back of weak prices and lower volumes.
Business and operations to be substantially impacted by the Covid-19 pandemic. Covid-19 has hit demand from construction sector owing to lockdowns and a continued slowdown in the sector would impact performance.
Business is dependent on its ability to mine or procure sufficient limestone for its operations, and its inability to do so on reasonable terms, or at all, could have adverse impact on business, financial health and results of operations.
The recently enacted Mines and Minerals (Development and Regulation) Amendment Act, 2021, may result in the lapsing of letters of intent for the grant of mining leases under Section 10A of the MMDR Act. In addition, the amendment may also impact continuity of certain non-operating mining leases.
It's dependent on continued availability of coal, water, labour and other raw materials—the costs and supply of which can be subject to significant variations because of factors outside its control.