Nuvoco Vistas IPO opens for subscription. Check details here
Nuvoco Vistas IPO opened for subscription on Monday and the cement manufacturer Nuvoco Vistas Corporation Ltd, part of the Nirma Group, has fixed a price band of ₹560-570 a share for its ₹5,000 crore initial public offering. Nuvoco Vistas has said that the three-day initial share sale will conclude on August 11.
Nuvoco Vistas IPO comprises a fresh issue of shares worth ₹1,500 crore and an offer for sale of ₹3,500 crore by promoter Niyogi Enterprise. Nuvoco Vistas has said it will use the proceeds of the fresh issue to repay certain loans and general corporate purposes.
Nuvoco Vistas has said that half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 26 equity shares and in multiples of 26 equity shares thereafter.
Nuvoco Vistas has raised ₹1,500 crore from anchor investors and according to a circular on BSE’s website, the company has decided to allocate 2.63 crore equity shares to anchor investors at ₹570 apiece aggregating the transaction size to ₹1,500 crore.
Among the domestic investors that participated in the anchor book were HDFC Life Insurance Company, SBI Life Insurance Company, SBI Mutual Fund (MF), Axis MF, Mirae MF, Franklin Templeton MF, Premji Invest and SBI Pension Fund. And, APG AM, CI Funds, TT International, Carmignac, and Wells Capital were among the foreign portfolio investors participants.
ICICI Securities, Axis Capital, JSBC Securities and Capital Markets (India) Private Limited J.P. Morgan India and SBI Capital Markets are merchant bankers.
Nuvoco Vistas’ equity shares will be listed on BSE and NSE. The company was delisted from these stock exchanges in 2011.
Nuvoco Vistas, which was formerly known as Lafarge India Limited, announced in February 2020 that it will acquire the 8.3 million tonne per annum cement business of Emami for an enterprise value of ₹5,500 crore. The Competition Commission of India (CCI) approved the deal in May 2020.
Nuvoco Vistas has a consolidated capacity of 22.32 MMTPA and 11 cement plants comprising five integrated units, five grinding units and one blending unit. It operates cement manufacturing units in Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana.
(With agency inputs)