PremiumMUMBAI: Nirma Group's cement company, Nuvoco Vistas Corp. Ltd, has fixed its initial public offering (IPO) price at ₹560-570 a share. Earlier the firm said its issue will open on 9 August and close on 11 August.
The IPO will comprise a fresh issue of ₹1,500 crore and an offer for sale of ₹3,500 crore by its promoter entity Niyogi Enterprise Pvt. Ltd. Niyogi Enterprises holds 86.56% stake in the company.
The proceeds from the fresh issue of shares will be used for repayment in full or part of certain borrowings availed by the company.
As of March 2021, total borrowings (long-term and short-term) of the company stood at ₹7,642.18 crore.
For fiscal year 2020, Nuvoco Vistas' revenue from operation stood at ₹6,793.24 crore versus ₹7,052.13 crore a year ago. Net profit for the period was at ₹249.26 crore against a loss of ₹26.49 crore. For the nine months ended December 2020, the firm reported revenue of ₹4,857.22 crore against a net loss of ₹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, while ready mix concrete (RMX) plants are located across India.
As of December 2020, its cement plants have an installed capacity of 22.32 million metric tonnes per annum (MMTPA), while as of March 2021, it operates 49 RMX plants.
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