Cement Manufacturer Nuvoco Vistas Receives Sebi Nod For Rs 5,000 Crore IPO
Nuvoco Vistas has three business verticals, viz. cement, ready-mix concrete and modern building materials
Nuvoco Vistas Corporation, the cement arm of the Nirma Group, has received approval from the market regulator Securities and Exchange Board of India (SEBI) for its Rs 5,000-crore initial public offering (IPO). Nirma was de-listed from the stock exchanges nine years ago, although it continues to be a household detergent brand across the country. The Nuvoco Vistas' listing will be a significant development for the cement sector as Burnpur Cement was the last cement company to be listed on the Indian bourses way back in November 2007.
Nuvoco Vistas Corporation's IPO will comprise a fresh issue of shares aggregating up to Rs 1,500 crore and an Offer for Sale (OFS) of up to Rs 3,500 crore by the promoter. The company had filed its draft red herring prospectus (DRHP) with SEBI on May 6.
The proceeds from the share sale will be used to repay debt worth Rs 1,350 crore and for general corporate purposes.
Nuvoco Vistas is the 5th largest cement player, by capacity. It has three business verticals, viz. cement, ready-mix concrete and modern building materials. It has cement plants across Chhattisgarh, Rajasthan, Haryana and West Bengal, and has also diversified into building materials with over 50 products across cement, ready mix concrete and modern building materials.
Nuvoco Vistas' listed peers include Ultratech Cement and Shree Cement.
ICICI Securities, Axis Capital, JP Morgan, HSBC Securities and SBI Capital are the advisors to the IPO.