InvestorQ : Do you think that the Nuvoco Vistas IPO is worth investing and when do you expect the IPO to hit the market?
Mitali Bhutta made post

Do you think that the Nuvoco Vistas IPO is worth investing and when do you expect the IPO to hit the market?

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5 months ago
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SEBI has finally given approval for the proposed Rs.5,000 crore IPO of Nuvoco Vistas Corporation. This is the cement arm of Karsanbhai Patel’s Nirma Group, which was incidentally way back in 2012. Nuvoco Vistas was created by combining the cement division of Lafarge India as well as the cement division of Emami of Kolkata. This will be a combination of new issue and OFS and is expected in first week of August.

The last new cement company to list via the IPO route was Burnpur Cement in 2007, so this will be a big event for cement sector as it will be the first cement IPO listing in nearly 14 years. The IPO will consist of Rs.1,500 crore of fresh issue and Rs.3,500 crore of offer for sale by Nirma. The fresh issue proceeds will be used to repay debt of Rs.1,350 crore. Interestingly, Nuvoco is the fifth largest cement player in India by installed capacity. We have to await price details for arriving at a view on valuations.

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