Nuvoco Vistas raise Rs 1,500 cr from anchor investors; IPO opens on Aug 9

Only days ahead of its initial share sale, Cement manufacturer Nuvoco Vistas Corporation Ltd, part of the Nirma Group, has raised Rs 1,500 crore from its anchor investors. The fundraises comes as a boost for the company, which opens its initial public offer (IPO) on August 9. The company, along with the Rs 1,500 crore from anchor investors, will look to raise Rs 3,500 crore through OFS (offer for sale).

Nuvoco Vistas IPO to a positive start

With its public subscription set to open on Monday, Nuvoco Vistas have got off to a positive start with the investment. With its offer, the cement production company had decided to allocate 2.63 crore equity shares to anchor investors at Rs 570 apiece aggregating the transaction size to Rs 1,500 crore. According to a circular uploaded on Friday on BSE website, the company looks to raise a total of Rs 5,000 crore from its public offer. The public issue priced at a band of Rs 560-570 a share, will close on August 11.

According to the company’s prospectus, the proceeds of the fresh issue will be used to the repayment of loans availed by the company. Half of the issue size has been reserved for qualified institutional buyers (QIBs), while 15 per cent are reserved for non-institutional investors. The remaining 35 per cent are on offer for the retail investors to buy. Investors can bid for a minimum of 26 equity shares and in multiples of 26 equity shares thereafter.

A bit about Nuvoco Vistas

Nuvoco Vistas, formerly Lafarge India Limited, is one of India’s largest cement manufacturers with a consolidated capacity of 22.32 million metric tonnes per annum (MMTPA). The company holds 11 cement plants spread across states of Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana. The company is led by Chairman Hiren Patel and Managing Director Jayakumar Krishnaswamy. Earlier in February 2020, Nuvoco Vistas announced a future acquisition of the 8.3 million tonnes per annum cement business of Emami for an enterprise value of Rs 5,500 crore. The deal was approved in May 2020 by the Competition Commission of India. The company is part of the Nirma Limited, which was delisted on the BSE and the NSE in 2011.

IMAGE: PTI/ UNSPLASH