INSUBCONTINENT EXCLUSIVE:
Nuvoco Vistas' shares are likely to be listed on the bourses on August 23Nuvoco Vistas Corporation going public (IPO) opens for membership
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.
