
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
2019 | 2020 | 2021 | |
---|---|---|---|
Revenue from Ops | ₹7052.1 Cr | ₹6793.2 Cr | ₹7488.8 Cr |
Profit before Excep* | ₹16.60 Cr | ₹386.75 Cr | ₹36.54 Cr |
Profit after Tax | ₹(26.48) Cr | ₹249.25 Cr | ₹(25.92) Cr |
EPS (Basic) | (1.09) | 10.28 | (0.82) |
As of March 2020 | EPS (Avg*) | P/E (Floor) | P/E (Cap) |
---|---|---|---|
Based on basic EPS | 2.83 | 197.87 | 201.41 |
Nuvoco Vistas IPO: Comparison with listed industry peers
Company | P/E (Cap) |
---|---|
Nuvoco Vistas | 201.4 |
Highest (Shree) | 44.26 |
Lowest (ACC) | 28.31 |
Sector Avg | 77.52 |
Nuvoco Vistas IPO Dashboard
Issue Details
Type | Value |
---|---|
Issue Size | ₹5,000 Cr |
Fresh Issue | ₹1,500 Cr |
Offer for Sale | ₹3,500 Cr |
Face Value | ₹10/- per Equity Share |
IPO Price | ₹560 – ₹570 |
Lot Size | 26 shares |
Lots | Min 1 – Max 13 |
Key Dates
Date Type | Date |
---|---|
Bid Open | 09/08/2021 |
Bid Close | 11/08/2021 |
Allotment Finalization | 17/08/2021 |
Initiation of Refunds | 18/08/2021 |
Credit of Shares | 20/08/2021 |
Listing Date | 23/08/2021 |
Lot Size and Price
Lots | Shares | Amount |
---|---|---|
1 | 26 | ₹14,820 |
13 | 338 | ₹1,92,660 |
Promoter Holding
Holding | Percentage |
---|---|
Pre-Issue | 95.24 % |
Post-Issue | 71.03 % |
Nuvoco Vistas IPO: Investor Quota and Shares Offered
Investor Type | Quota | Shares on Offer |
---|---|---|
QIB | 50% | 1,78,57,143 shares |
NII | 15% | 1,33,92,858 shares |
RII (Retail) | 35% | 3,12,50,000 shares |
Total | 100% | 6,25,00,001 shares |
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
Registrar of the Issue
Link Intime
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Phone: 022 4918 6200
Email: [email protected]
Lead Managers of the Issue
ICICI Securities Limited
Axis Capital Limited
HSBC Securities and Capital Markets
J.P. Morgan India Private Limited
SBI Capital Markets Limited
Phone: +91 22 4336 0000 / +91 22 6650 5050
Email: [email protected]