Nuvoco Vistas’ shares are more likely to be listed on the bourses on August 23
Nuvoco Vistas Corporation preliminary public providing (IPO) opens for subscription immediately i.e. August 9. The Rs 5,000 crore IPO of the cement arm of the Nirma Group will stay open for 3 days, till August 11. The IPO will encompass a contemporary subject of Rs 1,500 crore and provide on the market of Rs 3,500 crore. Nuvoco Vistas’ shares are more likely to be listed on the bourses on August 23.
Burnpur Cement was the final cement itemizing on the Indian bourses method again in November 2007.
The proceeds from the share sale will probably be used to repay debt price Rs 1,350 crore and for normal company functions.
Nuvoco Vistas is the fifth largest cement participant, by capability. It has three enterprise verticals, viz. cement, ready-mix concrete and trendy constructing supplies. It has cement vegetation in Chhattisgarh, Rajasthan, Haryana and West Bengal, and has additionally diversified into constructing supplies together with prepared combine concrete and trendy constructing supplies.
Ultratech Cement and Shree Cement are the listed friends of Nuvoco Vistas.
ICICI Securities, Axis Capital, JP Morgan, HSBC Securities and SBI Capital are the advisors to the IPO of Nuvoco Vistas Corporation.
Should one spend money on the IPO of Nuvoco Vistas Corporation?
“At the upper end of the IPO price band, Nuvoco Vistas Corporation Limited is offered at an Ev/Tonne of 15300, which we believe is reasonably priced compared to its listed peers. On the financial front, NVCL is backed by sound balance sheet (i.e. net debt/equity at 0.6x which is also below industry average of 0.8x) and steady cash flows which makes NVCL to embark on next round of growth,” Anand Rathi mentioned in a notice to its traders.
“Considering these and the growth prospects in light of affordable housing push to meet PMAY (Pradhan Mantri Awas Yojna) for all by 2022 target of the government, investors may consider an investment with a long-term perspective. Hence, we recommend a “Subscribe (Long Term)” rating to this IPO,” Anand Rathi added.
