Nuvoco Vistas Corporation Limited IPO Details

Nuvoco Vistas IPO: Key Details

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Company Information

Nuvoco Vistas Corporation Limited, incorporated in 1999 – a subsidiary of the Nirma Group, is the fifth-largest cement company in India and the largest cement company in East India in terms of capacity. As of December 31, 2020, their cement production capacity constituted approximately 4.2% of total cement capacity in India, 17% of total cement capacity in East India, and they are one of the leading ready-mix concrete manufacturers in India.

They distribute their products through the trade segment, which mainly caters to individual home buyers, and the non-trade segment, which is mainly via direct sales to institutional and bulk buyers. Their focus is on the Trade Segment, where distribution channels are a mix of wholesale and retail dealers and a sub-dealer network. They have developed strong relationships with channel partners over the years and built a loyal customer base.

Competitive Strengths

• Largest cement manufacturing company in East India in terms of total capacity
• Market-leading brands that establish and enhance leadership as a building materials company with strong brand recognition
• Strategically located cement production facilities that are in close proximity to raw materials and key markets
• Extensive sales, marketing and distribution network with diversified product portfolio
• Growth in business and operations from acquisitions and, in particular, the recently concluded acquisition of NU Vista
• Strong research and development and technological capabilities
• Experienced Individual Promoter and professional management team

Company Strategy

• Consolidate and grow market share in East, North and Central India
• Increase portfolio of premium products and profit margins
• Focus on operational efficiencies and synergies to improve returns, whilst expanding manufacturing capabilities
• Strengthen the brand and expand its distribution network
• Growth through expanding operations and through acquisitions
• Complete the integration of the NU Vista cement business with their own business

Proceeds from fresh issue of Nuvoco Vistas IPO will be used to:

• Repayment/prepayment/redemption, in full or part, of certain borrowings availed of by the Company
• General corporate purposes

The proceeds from the Offer for Sale shall be received by the Selling Shareholder

Nuvoco Vistas IPO: Financials

Nuvoco Vistas IPO: Comparison with listed industry peers

Nuvoco Vistas IPO: Risks

• The business is dependent upon its ability to mine/ procure sufficient limestone for operations, and any inability to do so, could have an adverse impact
• The recently enacted Mines and Minerals Amendment Act, 2021 (“Amendment Act”) may result in lapsing of letters of intent for the grant of mining leases under Section 10A of the MMDR Act.
• The limestone reserve data and reserve life in the Red Herring Prospectus is only an estimate and actual reserves may differ from such an estimate
• They are dependent upon the continued availability of coal, water, labor and raw materials used in the
  production of cement, the costs, and supply of which can vary singnificantly

For complete internal and external risk factors, you can refer to the RHP of the company.

Nuvoco Vistas IPO: Registrar and Lead Managers