Nuvoco Vistas Corporation Limited initiated its operations in 1999. The company has its product portfolio under the cement and infrastructure development lobby. It is a sub company for the group of NIRMA. It sells its products in the entire Indian market and also has a great presence in the industry. Nuvoco has its manufacturing plants at various locations like Rajasthan, Bihar, West Bengal, Odisha, Jharkhand, Chhattisgarh etc. Together the firm has a capacity of almost 22 MMTPA.
IPO DETAILS
The Nuvoco Vistas Corporation Limited IPO is set to launch on 9th Aug, 2021. The subscription timeline extends till 11th Aug, 2021. The size for the IPO is 5000 Crore Rs. Shares issued through Offer for sale are 3500 Crore Rs. Shares worth Rs. 1500 Crore are issued through Fresh issue. The minimum lot size is 26 shares and the price is set at 560 Rs. – 570 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 9th Aug, 2021 |
| CLOSING DATE FOR IPO | 11th Aug, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs. per share |
| IPO price band | 560 Rs. – 570 Rs. |
| LOT SIZE | 26 shares |
| MINIMUM ORDER QUANTITY | 26 shares |
| ISSUE SIZE | 5000 Crore Rs. |
| OFFER FOR SALE | 3500 Crore Rs. |
| FRESH ISSUE | 1500 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 23rd Aug, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 9th Aug, 2021 |
| CLOSING DATE FOR IPO | 11th Aug, 2021 |
| IPO ALLOTMENT DATE | 17th Aug, 2021 |
| REFUNDS | 18th Aug, 2021 |
| DEMAT A/C CREDITED ON | 20th Aug, 2021 |
| IPO LISTING DATE | 23rd Aug, 2021 |
The Nuvoco Vistas Corporation Limited IPO begins for subscription from 9th Aug, 2021. The IPO subscription would continue till 11th Aug, 2021. The allotment status for the shareholders who applied would come on 17th Aug, 2021. The refunds for the ones who did not get allotment would be initiated on 18th Aug, 2021. The DEMAT accounts of shareholders would be credited on 20th Aug, 2021. The listing of the company would be accompanied on 23rd Aug, 2021.
LEAD MANAGERS
The promoters of the company are Karsanbhai Patel and Niyogi Enterprises Private Limited. Post IPO launch the shareholding would be close to 71.03% from 95.24%.
The lead managers are :
- ICICI Securities Limited
- HSBC Securities and Capital Markets Private Limited
- J.P. Morgan India Private Limited
- Axis Capital Limited
- SBI Capital Markets Limited
The minimum lot size for the company is decided at 26 shares. This holding accounts to 14820 Rs.. The maximum lot size is decided at 338 shares. This amounts to Rs. 192660. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 26 shares | 14820 Rs |
| Maximum | 338 shares | 192660 Rs |
OBJECTIVES FOR THE IPO
- The money from the IPO can also be utilized to meet general corporate purposes.
- The company has borrowings from various firms and to repay it the IPO money would come in handy.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 199075 | 134443 | 132617 |
| REVENUE | 75226 | 68299 | 71058 |
| NET PROFIT | (259) | 2492 | (264) |
Nuvoco has an excellent asset base. The firm has close to 200000 Crore Rs of asset valuation. This has been rising over the previous 3 years. There is a special high growth noticed in the last year which is close to 60000 Crore Rs. However the revenues of the firm have not been supportive enough to the same. The company has been generating low revenues in comparison to its asset value and even lesser profits, The profits marked in 2020 were 2500 Crore Rs which is not even 2% of the asset base for that year.
However the COVID situation needs to be looked at as well. The infra industry was under constant stress due to the same. The rapid asset growth may give the company a higher headstart than all other companies in the coming future. There is a hope that such a robust increase in assets would lead to better revenues and higher profits in the current financial year.
PROS
- One of the largest manufacturing cement companies in India.
- Scattered and diverse manufacturing plants across India with a capacity close to 22 MMTPA.
- 2 Decades of experience in the respective field.
CONS
- Large asset base and low revenue generation in its comparison.
- Profits and asset base don’t match up. Company needs to be more active in using its assets productively.
Nuvoco Vistas Corporation Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Nuvoco Vistas Corporation Limited IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
