Nuvoco Vistas Corporation IPO price band fixed at Rs 560-570

Cement company Nuvoco Vistas Corporation has fixed the price band for its initial public offering (IPO) at Rs 560-570 per equity share

The company will open its Rs 5,000-crore public offer for subscription from August 9-11. This would be the sixth company to open IPO in the current month, after Devyani International, Windlas Biotech, Exxaro Tiles, Krsnaa Diagnostics, and CarTrade Tech.

Bidding for the anchor book will open for a day on August 6, as per the RHP.

The IPO comprises a fresh issue of Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise.

The company will utilise net proceeds from its fresh issue for repayment of debts of about Rs 1,350 crore.

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Investors can bid for a minimum of 26 equity shares and in multiples of 26 equity shares. Hence, the minimum investment by retail investors would be Rs 14,820 per lot and the maximum would be Rs 1,92,660 per 13 lots.

Up to 50 percent of the total offer size is reserved for qualified institutional buyers, 35 percent for retail investors, and 15 percent for non-institutional investors.

Nuvoco is the largest cement company in East India in terms of capacity. It is also one of the leading ready-mix concrete manufacturers in India.

As of December 31, 2020, its cement production capacity constituted approximately 4.2 percent of total cement capacity in India, 17 percent of total cement capacity in East India and 5 percent of total cement capacity in North India.

Nuvoco is promoted by Dr Karsanbhai K Patel, who is associated with the Nirma Group. The Nirma Group is a diversified conglomerate that manufactures products ranging from chemicals to detergents, soaps, healthcare products and real estate development.

The Nirma Group forayed into the cement business in 2014 through a greenfield cement plant in Nimbol. Thereafter, as a part of the Nirma Group, it has grown the cement businesses, through acquisitions such as the acquisition of the Indian cement business of LafargeHolcim in 2016 and NU Vista in 2020. Earlier, in February 2020, it completed the merger of the cement undertaking of Nirma Limited located at Nimbol, Rajasthan with the company.

Also read - Ahead of IPO, Krsnaa Diagnostics mops up Rs 537 crore from anchor investors

As of March 31, 2021, it has 11 cement plants (eight in East India and three in North India), having an installed capacity of 22.32 million tonnes per annum.

ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), JP Morgan India, and SBI Capital Markets are the book running lead managers to the issue.