Nuvoco Vistas Corp slips on debut

Shares of Nuvoco Vistas Corporation were currently trading at Rs 538, at a discount of 5.61% compared with the issue price of Rs 570 per share.

The scrip was listed at Rs 471 per share, at a discount of 17.36% to the initial public offer (IPO) price.

So far, the stock has hit a high of Rs 549 and a low of Rs 471. On the BSE, over 4.70 lakh shares of the company were traded in the counter.

The IPO of Nuvoco Vistas Corporation received bids for 10.70 crore shares as against 6.25 crore shares on offer, according to stock exchange data. The issue was subscribed 1.71 times.

The qualified institutional buyers (QIBs) category was subscribed 4.23 times. The retail individual investors (RIIs) category was subscribed 0.73 times. The non-institutional investors (NIIs) category was subscribed 0.66 times.

The issue opened for bidding on Monday (9 August 2021) and closed on Wednesday (11 August 2021). The price band of the IPO was fixed at Rs 560-570 per share.

The IPO comprises of fresh issue of equity shares of up to Rs 1,500 crore and an offer for sale of up to Rs 3,500 crore.

The company proposes to utilize the net proceeds of the fresh issue towards repayment/ prepayment/ redemption, in full or part, of certain borrowings availed of by the company amounting to Rs 1,350 crore and balance towards general corporate purposes. The company had a total debt of Rs 7,130.2 crore as on June 2021 resulting in debt/equity ratio of 1.0x as on March 2021.

Ahead of the IPO, Nuvoco Vistas Corporation on 6 August 2021 finalized allocation of 2,63,15,788 equity shares to anchor investors, at Rs 570 per equity share, aggregating to Rs 1,499.99 crore.

Nuvoco Vistas Corporation (NVC) is engaged in the business of manufacturing and sale of Cement and Ready Mix (RMX) along with trading and manufacturing of aggregates. The company caters mainly to the domestic market. NVC acquired Nu Vistas in FY2020 making the company fifth largest cement manufacturer in India. NVC is present in 14 states with a significant presence across the eastern region and a moderate presence in the northern and central regions. The company has around 11% market share in the eastern market.

As of 31 December 2020, the company's cement production capacity constituted approximately 4.2% of total cement capacity in India, 17% of total cement capacity in East India and 5% of total cement capacity in North India. The company's products include Cement, RMX and modern building materials. Cement contributed 94.91% while the RMX contributed 5.08% and the balance was from modern building materials to the total sales in FY2021.

The company reported a net loss of Rs 25.92 crore and sales of Rs 7,488.84 crore in the twelve months ended 31 March 2021.

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