Disappointing debut: Nuvoco Vistas lists at 15% discount
On the BSE, Nuvoco Vistas opened for trading at Rs 471, at a discount of 17.37% or Rs 99 over its issue price of Rs 570 per share.
The cement arm of Nirma Group, Nuvoco Vistas made disappointing listing on the bourses. Shares of the company opened for trading at a 14.91% discount over the issue price of Rs 570 per share. The stock opened at Rs 485 apiece on the National Stock Exchange (NSE) and at Rs 471 on the BSE.
Earlier, the Rs 5,000-crore issue was subscribed 1.71 times as it received bids for 10,70,27,492 shares against 6,25,00,001 shares on offer. The portion for Qualified Institutional Buyers (QIBs) was subscribed 4.23 times, non-institutional investors 0.66 times and Retail Individual Investors (RIIs) 0.73 times.
The initial public offer aggregating up to Rs 5,000 crore comprised of fresh issuance of equity shares of Rs 1,500 crore and an OFS (offer for sale) of Rs 3,500 crore by its promoter entity Niyogi Enterprise. Niyogi Enterprises holds an 86.56% stake in the company. Proceeds of the fresh issue will be used for repayment of certain loans availed by the company and general corporate purposes.
The cement manufacturer will utilise its net proceeds from the fresh issues towards repayment of borrowings and general corporate purpose.
Nuvoco Vista Corporation, part of Nirma Group Company is among one of the largest cement companies and concrete manufacturers in India. It offers a diversified range of products such as cement, Ready-mix Concrete (RMX), and modern building materials i.e. adhesives, wall putty, dry plaster, cover blocks, and more.
The company’s plants are located in the states of West Bengal, Bihar, Odisha, Chhattisgarh, and Jharkhand in East India and Rajasthan and Haryana in North India with an aggregated installed capacity of 22.32 MMTPA (million metric tonnes per annum).
On the financial front, the company reported total revenue of Rs 7,522.69 crore compared to Rs 7,105.89 crore in FY19. Companies bottom line is in the red as it reported a net loss of Rs 25.92 crore versus a loss of Rs 26.49 crore during the same period. However, the company had posted a profit of Rs 249.26 crore in FY20.