Nuvoco Vistas Corporation Limited IPO subscribed 1.71 times on the final day of subscription

Nuvoco Vistas IPO: The initial public offering of the Nuvoco Vistas Corporation Limited was subscribed 1.71 times on August 11, 2021, the last day of subscription. The Rs 5,000 crore IPO received bids for 10,70,27,492 shares as against the issue size of 6,25,00,001 shares, according to the NSE data.

Qualified Institutional Buyers (QIBs) portion received 4.23 times subscription, non-institutional investors was subscribed 0.66 times and retail individual investors (RIIs) 0.73 times.

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.

The price band for the offer was fixed at Rs 560-570 per equity share. Investors were allowed to make bids 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.

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.

Besides, the cement major has already 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.

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.

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.