Nuvoco Vistas Corporation Ltd, a Nirma group company, has filed a draft red herring prospectus with SEBI to launch an IPO worth Rs 5,000 crore.
The issue will have a fresh issue of shares of up to Rs 1,500 crore and an offer-for-sale (OFS) of Rs 3,500 crore by the promoter selling shareholder Niyogi Enterprise Private Ltd which currently has an 86.56 percent stake in the company.
The proceeds will be used to repay debt worth Rs 1,350 crores and for general corporate purposes.
This is a big development for the cement sector as Burnpur Cement was the last cement company to be listed on the Indian bourses in November 2007.
Nuvoco Vistas mainly operates in three business verticals of cement, ready-mix concrete and modern building materials. The cement plants are across the states of Chhattisgarh, Rajasthan, Haryana and West Bengal.
The book-running lead managers to Nuvoco Vistas Corporation issue are ICICI Securities, HSBC Securities and Capital Markets (India) Private Ltd, Axis Capital, SBI Capital Markets Ltd, and JP Morgan India Private Ltd.
The company has reported a net loss of Rs 63.4 crore in the nine months ended December 31, 2020. It also reported a net loss of Rs 26.4 crore for the fiscal year 2019.
It is the fifth-largest cement company in India in terms of capacity with a consolidated capacity of 22.32 million metric tonne per annum (MMTPA). According to a CRISIL report, the cement demand in India is expected to grow at a CAGR of 6 percent to 7 percent from fiscal 2021 to fiscal 2026.
Nirma shares were delisted from the stock exchanges nine years ago although it continues to be a household detergent brand across the country.