Cement manufacturer Nuvoco Vistas Corporation made a weak debut on the exchanges Monday as the stock got listed at a 17.37 percent discount to the issue price on the BSE.
The shares started trading at Rs 471.00 apiece on the BSE as against the issue price of Rs 570. On the National Stock Exchange, the stock was listed at a discount of 14.91 percent at Rs 485.00.
The initial public offer (IPO) of Nuvoco Vistas Corporation was subscribed 1.71 times during August 9-11. The issue received bids for 10,70,27,492 shares against 6,25,00,001 shares on offer, according to data available with the exchanges.
The portion reserved for Qualified Institutional Buyers(QIBs) was subscribed 4.23 times, Non-Institutional Investors (NII) 66 percent and Retail Individual Investors (RIIs) 73 percent.
The IPO aggregating up to Rs 5,000 crore had a fresh issue of up to Rs 1,500 crore and an offer for sale of up to Rs 3,500 crore by promoter Niyogi Enterprise. The net proceeds from the fresh issue will be utilised for repaying debts.
India's fifth largest cement maker Nuvoco Vistas Corporation offers a range of over 50 products across cement, RMX (ready mix concrete) and modern building materials. Its cement production capacity constituted approximately 4.2 percent of the total cement capacity in India as of December 2020, and also, it is one of the leading ready-mix concrete manufacturers with 49 RMX plants across India.
The company is promoted by Dr Karsanbhai K Patel and is associated with the Nirma Group. The Nirma Group forayed into the cement business in 2014 through a greenfield cement plant in Nimbol. Thereafter, as a part of the Nirma Group, it has grown the cement businesses, through acquisitions such as the Indian cement business of LafargeHolcim in 2016 and NU Vista in 2020.