Nuvoco Vistas IPO is getting launched for subscription on Wednesday 09, August 2021, and will be available for subscription till Friday, 011 August, 2021.
The company is looking to raise Rs.5000 crore through public issue with ₹1500 crore from fresh issues while it plans to raise ₹3500 crore through OFS (offer for sale) by existing selling shareholders.
The Nuvoco Vistas is seeking a market valuation of Rs.20,358 crore at the upper end of its price band.
The company has also decided to allocate 2.63 crore equity shares to anchor investors at Rs 570 per share aggregating the transaction size to Rs 1,500 crore.
The domestic anchor list include name such as HDFC Life Insurance Company, SBI Life Insurance, SBI Mutual Fund (MF), Axis MF, Mirae MF, Franklin Templeton MF, Premji Invest and SBI Pension Fund etc.
Where as some of the foreign portfolio investors participants were APG AM, CI Funds, TT International, Carmignac, and Wells Capital.
The equity shares of Nuvoco Vistas Corporation Ltd are proposed to be listed on both BSE and NSE.
The Nuvoco Vistas IPO issue will be sold in the price band of Rs 560-570 per share and the minimum lot quantity is 26 shares and in multiples thereof translating to a minimum investment of Rs 14,820 at upper end.
The latest Grey market premium price (GMP) for Nuvoco Vistas IPO were seen up by more than 11.69% and were trading around Rs.65-75 as of today, This means people are expecting it to open on listing day to be at least at Rs.635 or more.
Having said that GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
The recent example is Glenmark life science IPO, according to the GMP, it was supposed to open above 850 or more but it opened around 750, although above the subscription price i.e. 720 at upper end.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
One must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the Nuvoco Vistas IPO let us talk about in brief about the company and its financials and other details step by step.
About Nuvoco Vistas Corporation Ltd (NVCL):
Incorporated in 1999, Nuvoco Vista Corporation (NVCL), a part of Nirma Group Company, is the fifth largest cement company in India and the largest cement company in East India in terms of capacity.
Hiren Patel is the Chairman and a Non-executive Director of the company. He has been on the board since November 11, 2017.
As of December 31, 2020, their cement production capacity constituted 4.2% of total cement capacity in India, 17% of total cement capacity in East India and 5% of total cement capacity in North India.
While the entire cement industry has a share of trade/retail sales at 65-68%, several retail focused players like NVCL, Lafarge Holcim Group and Shree Cements enjoys retail share of 75-85%.
It is also one of the leading ready-mix concrete (RMC) manufacturers with 49 RMC plants across India. The company forayed into the cement business in 2014 through a greenfield cement plant in Nimbol.
Thereafter, it has grown the through acquisitions such as the acquisition of the Indian cement business of LafargeHolcim in 2016 and in 2020 by acquiring NU Vista (Emami).
As of March-21, it has total installed cement capacity of 22.32 MT with 11 plants (eight in East, three in North). It also has 151.2 MW power plants (105 CPP, 44.7 MW WHRS and 1.5 MW solar) which caters 50.4% of its power requirements.
Diversified business portfolio of Nuvoco include:
Cement: The consolidated entity of Nuvoco has well recognised cement brands in the market Concreto, Duraguard and Double Bull. The business accounted for 84% of the company’s total sales in FY20.
RMC: The company’s RMC business has a pan-India presence offering specialized products like Artiste and InstaMix. The company has over 49 plants as of March 2021. The company has recently launched innovative products like InstaMix Mortare to supply wet-mix cement mortar in bags which is used for all kind of masonry.
Modern Building material (MBM): The MBM product range under the Zero M and InstaMix brands comprises of construction chemicals, waterproofing agents, wall putty, tile adhesive, ready mix dry plaster and cover blocks.
Let us now move on to check the financials of the company.
Nuvoco Vistas Financials:
The company sold 17.26 MT of cement in FY21. Of this, 13.47 MT sales were in East India, 2.66 MT in North India and 1.13 MMT in Central region.
At a price of 570/share, the stock is available at 16.9x FY21 EV/EBITDA.
Revenue from operations stood at 6,793 crores in FY 2019-20, in comparison to 7,053 crores in FY 2018-19.
While EBITDA grew by 39% from 957 crore in FY 2018-19 to 1,334 crores in FY 2019-20, recording a strong margin of 20%. They also reported a healthy PAT of 249 crores, a substantial growth from (24) crores in FY 2018-19.
East India is the fastest growing cement markets in India. Nuvoco is the largest cement manufacturer in East India and the fifth largest cement manufacturer in India in terms of capacity.
In addition, their cement plants in Chhattisgarh and Rajasthan are ideally placed to serve the adjacent markets of Uttar Pradesh and Madhya Pradesh in Central India and Maharashtra in West India, respectively.
The company sold 17.26 MT of cement in FY21. Of this, 13.47 MT sales were in East India, 2.66 MT in North India and 1.13 MMT in Central region.
One may subscribe it with long term view rather than only for listing gains, having said that this is not a recommendation at all but just an opinion.
Nuvoco Vistas Peers Comparison:
Nuvoco will join the listed peers such as ACC, Ultratech, Shree, Ambuja cement and many more. Cement brands are largely classified into three brands – Category A, B and C brands (“CAT A, B and C” respectively).
CAT A producers are considered to be premium cement brands, whereas CAT B and CAT C producers sell at par or below the price of the base brand of a CAT A player.
The large pan-India players like UltraTech, ACC and Ambuja dominate the CAT A space along with the likes of Nuvoco Vistas (ex-South India) and India Cements, Ramco Cements and KCP in the southern region of India.
The CAT B space is largely dominated by the mid-sized players like JK Cement, JK Lakshmi Cement, Birla Corporation, Orient Cement along with the two large players Dalmia and Shree.
Most of the small regional players are in the CAT C segment, with most available options located in west and south.
Nuvoco Vistas IPO Details:
Nuvoco Vistas will sell shares at Rs 560-570 per share in its 3 day initial public offering starting on August 9 to 11, 2021.
The shares of Nuvoco Vistas IPO will be allotted on 17 August, 2021, The tentative date of Nuvoco Vistas IPO listing is around 23 August, 2021.
After the successful listing of company shares, promoters holding in the company will come down from existing 95.24% to 71.03%.
Nuvoco Vistas Objects of the Offer:
Proceeds of the fresh issue will be used to repayment of certain loans (1,350 cr) availed the company and general corporate purpose (150 cr).
50% of the issue size has been reserved for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.
Frequently Asked Question (FAQ):
1.What Is The Symbol For Nuvoco Vistas Corporation Limited ?
Ans: The Symbol is NUVOCO
2.When Nuvoco Vistas IPO Coming?
Ans: The Issue Period for Nuvoco Vistas IPO is 9-Aug-2021 to 11-Aug-2021.
3. Post Modification Period For Nuvoco Vistas IPO?
Ans: The Post issue Modification Period for IPO is 12-Aug-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Nuvoco Vistas IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 12-Aug-2021 (upto 12:00 PM).
5. What Is The Issue Type For Nuvoco Vistas IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Nuvoco Vistas IPO?
Ans: The Price (Band) Range for Nuvoco Vistas is Rs.560 to Rs.570 per equity share.
7. What Is The Lot Size For Nuvoco Vistas IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Nuvoco Vistas IPO is of 26 Equity Shares and in multiples thereof 26 Equity Shares.
8. Who Are The Book Running Lead Managers For Nuvoco Vistas IPO?
Ans: The Book Running Lead Managers are, ICICI Securities Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and SBI Capital Markets Limited.
9. What Is The Face Value For Nuvoco Vistas IPO?
Ans: The Face Value is of Rs.10 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Nuvoco Vistas IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Name of the Registrar is Link Intime India Private Limited
The Contact person name number and Email id is Shanti Gopalkrishnan,+91 22 4918 6200, [email protected]
The Address of the Registrar is C-101, 1st Floor 247 Park Lal Bhadur Shastri Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India
Where To Check Nuvoco Vistas IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
In comparison to other major cement producing countries, India exhibits the lowest per capita cement consumption at 200-250 kg, which is nearly half of world average of 500-550 kg.
China has the highest per capita cement consumption of 1650-1750 kg, followed by Korea at 900-950 kg. However, despite a low per capita cement consumption, India is the second largest cement consumer in the world behind China.
Crisil Research expects cement demand to register a CAGR of 6-7% in FY21-26, driven by a raft of infrastructure investments and healthy revival in housing demand, as compared to a CAGR of 4.5-5.5% witnessed during FY15-20.
Let us checkout some of the strengths and risk factors for Nuvoco Vistas
Some of the qualitative factors and strengths of Nuvoco Vistas
- Largest cement manufacturing company in East India in terms of total capacity
- Market-leading brands that enhance leadership as building materials company with strong brand recognition
- Strategically located cement production facilities in close proximity to raw materials, key markets
- Extensive sales, marketing and distribution network
- Growth in business from recent acquisition of NU Vista
Some of the Risk Factor for Nuvoco Vistas
- Heavy dependency on limestones for manufacturing plants. Changes in mining policies may affect the business
- Volatility in prices of key input materials like petcoke, coal and freight have a high bearing on the cost efficiency
- Inability to effectively integrate operations of acquired assets may not yield timely or effective results
Therefore, it is always advisable to go through Nuvoco Vistas IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.
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