Cement Company Nuvoco Vistas to Raise Rs 5,000 Cr through IPO

Nuvoco Vistas Corporation, a Nirma Group company, has received the regulator’s nod for issuing an initial public offering (IPO). The company is looking to raise Rs 5,000 crore through IPO, as per the draft red herring prospectus (DRHP) filed by the company on May 9, 2

BY Realty Plus
Published - Thursday, 22 Jul, 2021

Cement Company Nuvoco Vistas to Raise Rs 5,000 Cr through IPO

Nuvoco Vistas Corporation, a Nirma Group company, has received the regulator’s nod for issuing an initial public offering (IPO). The company is looking to raise Rs 5,000 crore through IPO, as per the draft red herring prospectus (DRHP) filed by the company on May 9, 2021. The IPO comprises a fresh issuance of shares worth Rs 1,500 crore and an offer for sale worth Rs 3,500 crore by the promoter. In terms of its manufacturing capacity, Nuvoco Vistas -- formerly known as Lafarge India Limited -- is the fifth largest cement company in India and the largest cement company in east India, as per the DRHP filings. It also is one of the leading ready mix concrete manufacturers in India and has grown from being a cement focused entity to now a building materials company offering more than 50 products across cement, ready mix concrete and modern building materials sold under well-established brand names such as Concreto, Duraguard, Double Bull, ZeroM and Instamix. With the net proceeds the company looks to repay some of its borrowings worth Rs 1,350 crore. The company believes that the central government’s focus on roads, railways, urban infrastructure and irrigation will boost infrastructure investments. The share of cement demand of the infrastructure segment is expected to increase from 23% to 25% in FY21 to 25% to 27% in FY26, as per DRHP filing.