Nuvoco Vistas Corporation Ltd IPO

Current

IPO Synopsis

Nuvoco Vistas IPO Synopsis

Nuvoco Vistas a part of Nirma Group Company & largest cement players in India is launching its Initial Public offer. The issue size of Nuvoco Vistas IPO is around ₹5,000 crores of which ₹ 1,500 crores will be a fresh issue and the rest will be an offer for sale. Open and Close dates of Nuvoco Vistas IPO are not announced yet.

 

Nuvoco Vistas Shareholding Pattern

% Shareholding

Pre- IPO(%)

Post-IPO(%)

Promoter & Promoter Group

95.24

71.03

Public

4.76

28.97

 

Offer Details:

Fresh Issue of Equity Shares aggregating upto ₹1,500 Crore and Offer for sale of Equity Shares aggregating upto ₹3,500 Cr) 

The Company proposes to utilise the Net Proceeds towards the following objects:

1.   Repayment/prepayment of all or certain of our borrowings; and 
2.   General corporate purposes
 

About Nuvoco Vistas Corporation Ltd

About Nuvoco Vistas Corporation Ltd

Nuvoco Vistas Corporation Limited (NVCL) is the 5 the largest cement company in India and the largest cement company in East India in terms of capacity. As of December 31, 2020, their cement production capacity constituted approximately 4.2% of total cement capacity in India, 17% of total cement capacity in East India and 5% of total cement capacity in North India, and they are one of the leading ready-mix concrete manufacturers in India.

NVCL is promoted by Dr. Karsanbhai K. Patel, who is a successful entrepreneur and is associated with the Nirma Group. As of March 31, 2021, NVCL has 11 Cement Plants (8 in East India and 3 in North India). The company’s Cement Plants are in the states of West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in East India and Rajasthan and Haryana in North India, while their RMX Plants are located across India. As of March 31, 2021, their Cement Plants have an installed capacity of 22.32 MMTPA. 3 of their plants in East India are integrated units and 5 plants are grinding units. 2 of their plants in North India are integrated units and the third is a blending unit. They have waste heat recovery systems at all their integrated plants with a total capacity of 44.7 MW, solar power plants with a total capacity of 1.5 MW and captive power plants with a generation capacity of 105 MW. As of March 31, 2021, these generated 50.43% (on a proforma basis) of their total power requirements.

For the Fiscals 2021, 2020 and 2019, the total capacity utilisation of their plants in North India, calculated on the basis of total production capacity, was 72.67%, 83.79% and 85.59% respectively. During the same periods, the total capacity utilisation of their plants in East India, calculated based on total production capacity, was 79.16%, 93.39% and 97.12% respectively. For the Fiscals 2021, 2020 and 2019, the total capacity utilisation of all their plants across India, calculated based on total production capacity, was 77.57%, 90.05% and 92.99% respectively.

Key Points

Competitive Strengths:

Some of the competitive strengths are as follows

1.  Largest cement manufacturing company in East India in terms of total capacity 

The company is the largest cement manufacturer in East India and the fifth largest cement manufacturer in India in terms of capacity (Source: CRISIL Report).  NVCL has a capacity share of approximately 17% in terms of consolidated capacity in East India (Source: CRISIL Report). The company also has a capacity share of approximately 4.7% in terms of consolidated capacity in North India (Source: CRISIL Report). With a consolidated capacity of 22.32 MMTPA, it own 4.2% of the industry’s installed capacity in India as of December 2020 (Source: CRISIL Report).

The location of their plants allows them to maintain their leadership position in East India while growing their business in North India. In addition, their Cement Plants in Chhattisgarh and Rajasthan are ideally placed to serve the adjacent markets of Uttar Pradesh and Madhya Pradesh in Central India and Maharashtra in West India respectively. They also have a third-party procurement agreement for manufacturing and packaging certain cement products in the State of Uttar Pradesh, thereby establishing a presence in the high growth market of Central India.

Additionally, they are one of the leading industry players in the RMX industry. Their position in the RMX industry allows them to access key markets in India, particularly in areas where their cement products are not readily available.

2.  Strategically located cement production facilities that are in close proximity to raw materials and key markets:

Company’s Cement Plants are located at various strategic locations in East and North India. These locations allow them to effectively sell and market their products in East and North India as well as access to select key markets in Central India. They have 3 integrated units and 5 grinding units located in East India, and 2 integrated units and 1 blending unit located in North 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 to customers in a cost efficient manner.

3.  Experienced Individual Promoter and professional management team:

NVCL has seen strong growth under the vision, leadership and guidance of the Individual Promoter, Dr. Karsanbhai K. Patel, who is a successful entrepreneur committed to becoming a key player in the high-growth building materials industry. They also have a well-qualified senior management team with experience across all functions of the building materials industry. The experience of the Individual Promoter and their management team provides them with a significant competitive advantage with which to grow their business.

 

Risk Factors:


Some of the risk factors are as follows

1.    COVID-19 pandemic has and will substantially impact the construction industry, the continued slowdown in the Indian construction industry could severely impact the company’s results of operations and profitability. 

2.    NVCL is dependent upon the availability of coal, water, labour and raw materials used in the production of cement, the costs and supply of which can be subject to significant variation due to factors outside the company’s control.

3.    There are outstanding legal proceedings involving the Company, the Subsidiary, the Individual Promoter, the Directors and the Group Companies and any adverse outcome in any of these proceedings may adversely impact the business, reputation, financial condition and results of operations.

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

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To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

Contact Details of Nuvoco Vistas Corporation Ltd IPO

Contact Information

Address

Nuvoco Vistas Corporation Ltd
Equinox Business Park, Tower 3, East Wing,
4th Floor, LBS Marg, Kurla (West),
Mumbai - 400 070

Phone: +91 22 6769 2500
Email: investor.relations@nuvoco.com
Website: http://www.nuvoco.com/

Nuvoco Vistas Corporation Ltd IPO Lead Manager

Link Intime India Private Ltd
   Link Intime India Private Ltd
   C 101, 247 Park, L.B.S.Marg,
   Vikhroli (West), Mumbai - 400083

Phone: +91-22-4918 6270
Email: nuvoco.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

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