Nuvoco Vistas' shares are likely to be listed on the bourses on August 23Nuvoco Vistas Corporation going public (IPO) opens for membership today i.e.
August 9.
The Rs 5,000 crore IPO of the cement arm of the Nirma Group will stay open for three days, until August 11.
The IPO will consist of a fresh issue of Rs 1,500 crore and sell of Rs 3,500 crore.
Nuvoco Vistas' shares are most likely to be listed on the bourses on August 23.
Burnpur Cement was the last cement listing on the Indian bourses method back in November 2007.
The earnings from the share sale will be used to pay back debt worth Rs 1,350 crore and for general corporate purposes.Nuvoco Vistas is the 5th biggest cement gamer, by capacity.
It has three organization verticals, viz.
cement, ready-mix concrete and modern-day structure materials.
It has cement plants in Chhattisgarh, Rajasthan, Haryana and West Bengal, and has likewise diversified into structure products including prepared mix concrete and modern-day building materials.Ultratech Cement and Shree Cement are the noted peers of Nuvoco Vistas.ICICI Securities, Axis Capital, JP Morgan, HSBC Securities and SBI Capital are the consultants to the IPO of Nuvoco Vistas Corporation.Should one purchase the IPO of Nuvoco Vistas Corporation? At the upper end of the IPO rate band, Nuvoco Vistas Corporation Limited is provided at an Ev/Tonne of 15300, which we believe is fairly priced compared to its noted peers.
On the financial front, NVCL is backed by sound balance sheet (i.e.
net debt/equity at 0.6 x which is also listed below market average of 0.8 x) and consistent cash flows which makes NVCL to start next round of development, Anand Rathi stated in a note to its financiers.
Considering these and the development potential customers because of affordable real estate push to satisfy PMAY (Pradhan Mantri Awas Yojna) for all by 2022 target of the government, financiers might think about an investment with a long-term viewpoint.
We advise a Subscribe (Long Term) rating to this IPO, Anand Rathi included.