The initial public offering (IPO) of Nuvoco Vistas Corporation has subscribed 16 percent on August 9, the first day of bidding. The offer has received bids for 97.33 lakh equity shares against the IPO size of 6.25 crore equity shares, the subscription data available on exchanges showed.
The company has reduced its IPO size to 6.25 crore equity shares from 8.77 crore equity shares after raising Rs 1,500 crore from anchor investors on August 6.
Retail investors have put in bids for 31 percent of their reserved portion, and non-institutional investors bought 1,89,176 equity shares against their portion of 1.33 crore equity shares. Qualified institutional buyers have put in bids for 364 equity shares against the reserved portion of 1.78 crore shares.
Nuvoco Vistas aims to raise Rs 5,000 crore through the public issue which comprises a fresh issue of Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise. The fresh issue proceeds will be utilised for repaying of debts.
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The price band for the offer, which closes on August 11, has been fixed at Rs 560-570 per equity share.
"At the higher price band of Rs 570, Nuvoco Vistas is demanding an EV/EBITDA multiple of 18.2x, which is at a premium to peer average of 15.2x. With favourable macros like reviving real estate sector, continued government's focus on infrastructure creation and lower per capita consumption on national level, the sector will continue to have a secular growth trend going forward," said Choice Broking which assigned a 'subscribe for long term' rating for the issue.
Nuvoco Vistas with its presence in high growth East & Central India and a key focus on the trade segment is likely to benefit from the growth in the sector, the brokerage feels.
Also read - Nuvoco Vistas Corporation IPO opens today; 10 key things to know
Currently, Nuvoco Vistas shares are available at a premium of Rs 35-40 or 6-7 percent over the issue price of Rs 570 in the grey market, the IPO Watch and IPO Central data showed.
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