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Nuvoco Vistas Corporation Limited IPO : Financial Highlights and Company Info.

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.