Nuvoco Vistas Corporation – India’s fifth largest cement company by capacity – has raised INR1,500 crore (INR15 billion) from anchor investors. Over 40 marquee investors, including Foreign Portfolio Investors, Mutual Funds and Insurance Companies, participated in the anchor book of Nuvoco Vistas IPO which opens for subscription on Monday, 9 August 2021. In a press release filed with stock exchanges, the company said it allocated nearly 2.63 crores equity shares at an upper band of INR570 per share to anchor investors. The anchor book represents 30% of the total IPO size of INR5,000 crore.
Over 90% of Nuvoco Vistas anchor investors are long only funds. Prominent among the investors are SBI Mutual Fund, SBI Life Insurance, ICICI Prudential Mutual Fund, Nippon Mutual Fund, Axis Mutual Fund, HDFC Life, Mirae Mutual Fund, Franklin Templeton Mutual Fund, Premji Invest, and SBI Pension Fund. Several foreign portfolio investors such as APG AM, CI Funds, TT International, Carmignac, and Wells Capital are also among Nuvoco Vistas anchor investors and were allotted nearly 34% of shares.
Nuvoco Vistas is promoted by serial entrepreneur Karsan Bhai Patel who is better known for making Nirma detergent powder and soap household names. Nuvoco Vistas is the largest cement company in East India in terms of capacity and sells its products under Concreto, Duraguard and Double Bull brands. As of 31 March 2021, the company had 11 cement plants with a consolidated installed manufacturing capacity of 22.32 MMTPA. The company also has a dedicated Construction Development and Innovation Centre (CDIC) which serves as the incubation centre for innovative products across the cement, ready mix concrete and modern building materials businesses.
Priced in the range of INR560-570 per share, the IPO is likely to yield INR1,500 crore to the company while shares worth up to INR3,500 crore will be sold by existing shareholders. Majority of the proceeds from Nuvoco Vistas IPO are proposed to go towards repayment or prepayment of debt. Investors can place orders in a lot size of 26 equity shares. The offer has received positive reviews from analysts and is also commanding a premium in the grey market.