Nuvoco Vistas
IPO Size
`5,000 Cr
Price Band
`560-570 Per Share
Minimum Lot Size
26 Share
Face Value
`10 Per Share
Employee Discount
NA
Retail Allocation
35%
Issue Open Date
09 Aug, 2021
Issue Close Date
11 Aug, 2021
Listing Date
IPO Size
Price Band
Minimum Lot Size
Face Value
Employee Discount
Retail Allocation
Issue Open Date
Issue Close Date
Listing Date
About the Company:
Nuvoco Vistas Corporation Limited manufactures cement and has an installed capacity of 14 MMTPA and is also one of the leading ready-mix concrete players in India. It has four integrated cement plants, two grinding units, one blending unit and a ready-mix concrete business. Its main brands are Concreto and Duraguard. After being launched in 2004, Concreto has been one of the best-selling brands for the company. Concreto and Duraguard are market leaders in terms of cement prices in the respective segment as well as regions. NVCL was initially a wholly owned subsidiary of Nirma, but in Fiscal 2020, Nirma has transferred its 100% holding in NVCL to Niyogi Enterprise Pvt Ltd (the promoter company). NVCL completed the acquisition of Emami’s cement business (8.3 MMTPA) at an enterprise value of INR 5,500 crore in July 2020, making it the largest player in East India with ~17% market share in terms of capacity on a consolidated level and the 5th largest player in India with a consolidated capacity of 22.32 MMTPA.
Outstanding Litigation:
| S.No. | 1 - Company | 2 - Promoters | 3 - Directors | 4 - Subsidiaries | |||
| Criminal cases | 277 | 1 | 4 | 110 | |||
| Material civil cases | 139 | - | 7 | ||||
| Taxation matters | 210 | 2 | 3 | 11 | |||
| Regulatory Procedings | 421 | - | - | 5 | |||
| Amt. (In Million Rs.) | 13,330.47 | 155.94 | 228.87 | 543.57 | |||
Financial Statements:
| Income Statement (In Millions) | FY21 | FY20 | FY19 | |
| Gross Operating Income | 75226.93 | 68299.44 | 71058.88 | |
| Cost of Employee & Inventory | 50745.64 | 46364 | 51831.44 | |
| Other Expenses | 9537.75 | 8596.95 | 9513.09 | |
| EBITDA | 14943.54 | 13338.49 | 9714.35 | |
| Depreciation | 7937.87 | 5278.77 | 4979.00 | |
| Interest | 6640.29 | 4192.21 | 4569.34 | |
| Profit Before Tax | 365.38 | 3867.51 | 166.01 | |
| Tax | 624.57 | 1374.96 | 430.89 | |
| Profit After Tax | -259.19 | 2492.55 | -264.88 | |
The promoters of the company are Niyogi Enterprises Pvt Ltd and Dr. Karsanbhai K Patel.
Peer Comparison: The company will face tough competition from Ultratech Cement, Ambuja Cement, Shree Cement and ACC.
The object of the Offer for Sale is to allow Niyogi Enterprise to sell an aggregate of up to 61.4 million equity Shares held by them amounting at Rs. 2,998.51 cr. The company will not receive any proceeds from the Offer for Sale.
The company has planned to raise fresh capital comprising an aggregate of 2,63,15,789 equity shares having Face Value ₹10 aggregating up to Rs. 1,500 Cr at the upper price band of Rs. 570. Out of the net proceeds an amount of Rs. 1,350 cr. will be utilized for repayment/prepayment of certain borrowings taken by the company while rest will be utilized for general corporate purpose.