Nuvoco Vistas Corporation Limited IPO: Study Before Subscribing

Nuvoco Vistas Corporation Limited IPO

The largest cement company in East India in terms of capacity, Nuvoco Vistas Corporation Limited will launch its initial public offer (IPO) on Aug 09, 2021. The offer will close on Aug 11, 2021 and the company has fixed the price band at ₹560- 570 per equity share.

About Nuvoco Vistas Corporation Limited

Nuvoco Vistas Corporation Limited offers a diversified range of products such as cement, Ready-mix Concrete (RMX), and modern building materials, i.e. construction chemicals, tile 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 16,076 dealers and 244 CFAs. In Fiscal 2021, the sales of company from the Trade Segment of the market constituted 73% (East India – 76%, North India – 56%, Central  India – 79%) of total cement sales volume, while sales from the Non-trade Segment constituted 27% (East India – 24%, North India – 44%  and Central India – 21%) of total cement sales volume.

Nuvoco Vistas Corporation Limited IPO Issue Details

OPENS ON:Aug 9, 2021
CLOSES ON:Aug 11, 2021 
Price band:₹560 to ₹570 per equity share 
Lot size:26 Shares 
One lot costing:₹14,820 
Face Value:₹10 per equity share 
Listing on:NSE, BSE
Issue size:₹5,000.00 crores (Fresh issue: ₹1,500.00 crores + Offer For Sale: ₹3,500.00 crores)
Shareholding:Promoter holding will stand at 71.03%  post-issue from 95.24% pre-issue.

Will list on the exchange on Aug 23, 2021.

Objects of the issue:

  • To carry out an offer for sale.
  • To achieve the benefits of listing the Equity Shares on the stock exchanges.

Interesting facts about Nuvoco Vistas Corporation Limited IPO:

  • The company has 11 cement plants (8 in East India and 3 in North India) 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. In addition, the company also operates 49 RMX plants (Ready Mix Concrete plants) in key states in India.
  • The company is amongst the largest cement companies and ready-mix concrete manufacturers in India. It is the fifth-largest cement company in India and the largest cement company in East India in terms of capacity.
  • Considering the FY-21 adjusted EBITDA of Rs.14,605 mn on a post-issue basis, the company is going to list at an EV/EBITDA of 17.54 with a market cap of Rs.2,03,579 mn while its peers, namely Ultratech Cement and Shree Cement, are trading at an EV/EBITDA of 21.00 and 26.15 respectively.

Get the complete coverage of the Nuvoco Vistas Corporation Limited IPO in the MSFL Research Report Here. To apply for Nuvoco Vistas Corporation Limited IPO, you can do it from our Marwadi Shares & Finance Ltd website.

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