Nirma Group announces filing of IPO papers by cement arm Nuvoco Vistas
Nuvoco Vistas IPO: The company, in terms of its manufacturing capacity, stands to be the 5th largest cement company in India and the largest cement company in East India.
May 07, 2021 / 02:09 PM IST
Karsanbhai Patel’s son Hiren Patel is the chairman of Nuvoco Vistas Ltd and is seen as the change agent at the low-profile Nirma Group who has led its diversification and acquisition strategy in recent years.
n Corporation Ltd, a building materials major backed by the Nirma Group has filed for a Rs 5,000-crore IPO with the market regulator, according to an official announcement by the Ahmedabad-based diversified conglomerate.
Moneycontrol was the first to report the filing of the DRHP (draft red herring prospectus) by the firm on May 6, 2021.
The IPO includes a fresh issue of equity shares aggregating to Rs 1,500 crores and an offer for sale aggregating Rs 3,500 crores by the promoter selling shareholder.
“As stated in the DRHP, out of the net proceeds the company looks to deleverage its balance sheet by paring off Rs 1350 cr of certain borrowings availed by the company besides general corporate purposes,” the announcement added.
Nuvoco Vistas, in terms of its manufacturing capacity stands to be the 5th largest cement company in India and the largest cement company in East India. As of December 31, 2020 its 11 integrated/blending units across east and north India had an installed cement manufacturing capacity of 22.32 mtpa ( million tonnes per annum). Additional expansion of 1.5 & 1.2 mtpa is underway at the Jojobera and Bhabua cement plant.
The announcement said that post acquisition of Nu Vista and merger of the Nimbol cement plant, the firm’s installed capacity in percentage terms doubled over the last 5 years to make it the fastest growing cement company in terms of capacity addition. Between FY18-20, the companies EBITA and PAT for the year grew at CAGR of 9% and 68.7% respectively, it further added.