Nuvoco Vistas IPO: Opens today; Key Details investors should know

The initial public offering (IPO) of the cement major Nuvoco Vistas Corporation's will open today, i.e., Monday, August 9, 2021, for a subscription. The issue will close on Wednesday, August 11, 2021. The price band for the offer has been fixed at Rs 560-570 per equity share.

Investors can bid for a minimum of 26 equity shares and in multiples of 26 shares thereafter. Retail investors can make a minimum investment of Rs 14,820 per lot, and a maximum investment of Rs 1,92,660 for 13 lots. Half of the offer is reserved for allocation to qualified institutional buyers, 15 per cent for non-institutional investors, and the remaining 35 per cent for retail individual investors.

Through the offer, the cement major seeks to raise Rs 5,000 crore through its public offer. The offer comprises fresh issuance of Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise.

Nuvoco Vistas intends to utilize the net proceeds of Rs 1,350 crore from the fresh issue for repaying (in part or full) of certain borrowings and general corporate purposes.

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 offer.

Nuvoco Vistas will finalise the basis of allotment on August 17, 2021. It will initiate refunds or unblocking of funds on August 18, 2021. Equity shares will be credited to DEMAT accounts of eligible investors on August 20, 2021, while the trading in equity shares will begin from August 23, 2021. Equity shares will list on both BSE and NSE.

Besides, the cement major has raised Rs 1,500 crore from anchor investors on August 6, 2021, by allocating 2,63,15,788 equity shares to anchor investors, at Rs 570 per equity share. Few of the anchor investors include APG Emerging Markets Equity Pool, Carmignac Portfolio, Signature Emerging Markets Fund, HDFC Life, ICICI Prudential Mutual Fund, SBI Mutual Fund, SBI Life, Nippon Mutual Fund, Axis Mutual Fund, Franklin Templeton Mutual Fund, Mirae Mutual Fund, Emerging Markets Equity Pool, and AB ARYA Partners Fund among others.

Nuvoco Vistas Corp. Ltd, is the fifth-largest player in India and the largest cement company in East India, in terms of capacity, with a consolidated capacity of 22.32 MMTPA. It is a Nirma Group company that forayed into the cement business in 2014 through a greenfield cement plant in Nimbol. Thereafter, it has grown the cement business, through the acquisition of the Indian cement business of LafargeHolcim in 2016 and NU Vista (formerly Emami Cement Limited) in 2020. Today, the company has grown from being solely cement-based to a building materials company with a vision to 'Build a Safer, Smarter and Sustainable World'.

The company also operates in the Ready-Mix Concrete (RMX) business with 49 RMX plants across India. Its most popular brands are Concreto and Duraguard, which are market leaders in respective segments and regions.