Best interest from QIB subscribed 4.23 times
Mumbai, August 11, 2021: Nuvoco Vistas Corporation Limited, India’s fifth largest cement company by capacity, received bids of 10,70,27,492 shares against the offered 6,25,00,001 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 0.73 times. While the Qualified Institutional Buyer category was subscribed 4.23 times, the Non-Institutional Investor category was subscribed 0.66 times and overall Issue was subscribed 1.71 times.
The total Offer size was up to Rs. 5,000 crores with a fresh issuance of Equity Shares, aggregating up to Rs. 1,500 crores and an offer for sale of Equity Shares aggregating up to Rs. 3,500 crores, by Selling Shareholder.
Key brokerage houses like Antique Stock Broking, IDBI Capital, Canara Bank Securities, KR Choksey, IIFL Securities, HEM Securities and Asian Markets Securities Pvt Ltd had given recommendations of “Subscribe” to the issue for long term perspective.
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.
ICICI Securities Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JP Morgan India Private Limited and SBI Capital Markets Limited are the book running lead managers to the Offer.