Nirma Group’s cement company, Nuvoco Vistas Corporation Ltd, has fixed its initial public offering (IPO) price at Rs 560-570 a share. The issue will open on 9 August and close on 11 August, the firm said.
The IPO will comprise a new issue of Rs 1,500 crore and an offer for sale of Rs 3,500 crore by its promoter entity Niyogi Enterprise Pvt. Ltd. Niyogi Enterprises holds an 86.56 per cent stake in the company. The proceeds from the new issue of shares will be used for repayment in whole or part of certain borrowings availed by the company.
As of March 2021, the total borrowings (long-term and short-term) of the company stood at Rs 7,642.18 crore.
For 2020, Nuvoco Vistas’ revenue from operation stood at Rs 6,793.24 crore versus Rs 7,052.13 crore a year ago. Net profit for the period was at Rs 249.26 crore against a loss of Rs 26.49 crore. For the nine months ended December 2020, the firm reported revenue of Rs 4,857.22 crore against a net loss of Rs 63.45 crore.
ICICI Securities Ltd, Axis Capital, HSBC Securities and Capital markets India, JP Morgan India and SBI Capital Markets are the lead managers to the issue.
Nuvoco Vistas Corp., the fifth-largest cement company in India, began its journey after acquiring the Indian cement business of LafargeHolcim in 2016 for $1.4 billion. In 2020, it inked a $770 million deal to buy the cement assets of Emami Group.
Its cement plants are located in West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in east India and Rajasthan and Haryana in north India. In contrast, ready mix concrete (RMX) plants are located across India.