Nuvoco Vistas Backed By Nirma Group Files For INR 5,000-crore IPO
With an Initial Public Offering (IPO) of INR 5,000 crore, Nuvoco Vistas Corp has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI), the market regulator. The IPO includes an offer for sale of INR 3500 crore by the promoters, and a fresh issue of INR 1,400-1,500 crore worth of shares. Axis Capital, ICICI Securities, HSBC Securities, SBI Capital Markets, and JP Morgan are the investment bankers for this issue.
After this listing, the company is looking at a valuation of INR 35,000 crore, which is the same amount as ACC cement’s current market capitalization. The top three cement companies - UltraTech, Shree Cement, and Ambuja - are currently valued at Rs 1.82 lakh crore, Rs 1 lakh crore, and Rs 61,000 crore, respectively.
Formerly known as Lafarge India, Nuvoco Vistas has a strong presence in the East. As of March 31, 2020, the company had a total borrowing of INR 4,463 crore, so it is looking to deleverage its balance sheet from this IPO offering.
Nirma Group ventured into the cement business back in 2014 through a greenfield investment. It eventually grew its business with the 2016 acquisition of Larfarge’s India Cement business. In 2020, the enterprise also acquired Emami Cement. All-in-all the mergers and acquisitions have nearly doubled its cement manufacturing capacity and increased its reach.
