Cement maker Nuvoco Vistas lists at a steep discount to issue price
Cement maker Nuvoco Vistas Corporation made a weak debut on the bourses. The stock got listed at Rs 531, a discount of 17.3 per cent over its issue price. The stock gained a little through the day and eventually closed the session at Rs 531.30, a 6.8 per cent discount to its issue price. Post listing, the company commands a market capitalisation of Rs 18,975 crore.
Its Rs 5,000-crore initial public offering (IPO) comprised a fresh issue of Rs 1,500 crore and an offer for sale of Rs 3,500 crore. And the IPO was subscribed 1.71 times. The institutional portion was subscribed 4.2 times, the high net worth individual portion (HNI) 0.66 times, and the retail portion 0.73 times.
The company plans to utilise the net proceeds of the fresh issue towards repayment of its borrowings. Nuvoco is part of the Nirma group and is the fifth largest cement company in India and the largest in East India in terms of capacity, according to a CRISIL report.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
