Nuvoco Vistas shares list at sharp discount to issue price

Nuvoco vistas shares to make their stock market debut today (representational image)

2 min read . Updated: 23 Aug 2021, 10:09 AM IST Livemint

Nuvoco Vistas IPO (initial public offering) was subscribed 1.71 times on the closing day of the subscription

Shares of Nuvoco Vistas Corporation made a lackluster debut at the Indian stock market on Monday. The stock listed at ₹485 per share on the National Stock Exchange (NSE), 15% discount to issue price of ₹570 apiece. Nuvoco Vistas shares recovered from lows minutes after listing, trading around ₹530, down over 6% from issue price.

The cement manufacturer, part of the Nirma Group, launched its three-day initial public offering (IPO) on August 9 which concluded on August 11 with the price at ₹560-570 a share. The initial share sale of the company was subscribed 1.71 times on the the closing day of bidding.

The IPO 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 66 per cent and Retail Individual Investors (RIIs) 73 per cent. The initial public offer aggregating up to ₹5,000 crore had a fresh issue of up to ₹1,500 crore and an offer for sale of up to ₹3,500 crore.

Nuvoco Vistas is a cement manufacturer with a consolidated capacity of 22.32 million metric tonnes per annum (MMTPA). It has 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.

''NVCL’s plants are located at various strategic locations in east and north India. They have three integrated units and five grinding units in East India, and two integrated units and one blending unit in North India. These locations allow them to effectively sell their products in East and North India as well as access to select key markets in Central India. They are also in the process of enhancing their cement capacity in their existing grinding units in Jojobera Cement Plant and Bhabua Cement Plant in East India. The connectivity to raw materials and their customers allows them to manufacture and sell their cement products in a cost-efficient manner,'' ICICI Direct had said in the IPO note.

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