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Nuvoco Vistas files initial papers with SEBI for ₹5,000-crore public issue

Our Bureau Mumbai | Updated on May 06, 2021

Nirma group co plans to raise ₹1,500 crore as fresh capital

Nuvoco Vistas Corporation, the cement company of Ahmedabad-based Nirma Group, has filed a Draft Red Herring Prospectus (DRHP) with the markets regulator to raise about ₹5,000 crore through an initial public offering (IPO). This marks the return of the group, helmed by billionaire Karsanbhai Patel, to the capital markets.

To pare debt

The IPO would comprise a fresh issue of up to ₹1,500 crore and an offer for sale (OFS) of up to ₹3,500 crore. The company will use the proceeds to repay borrowings of about ₹1,350 crore and for general corporate purposes, Nuvoco Vistas said in the DRHP. The promoters are Niyogi Enterprise and Karsanbhai K. Patel, it said.

ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), JP Morgan India and SBI Capital Markets are the book running lead managers to the issue. Link Intime India is the registrar to the offer.

Capex plans

Nuvoco Vistas is the fifth largest cement manufacturer in India and the largest cement company in East India with a consolidated capacity of 22.32 MMTPA. It has 11 cement plants, comprising five integrated units, five grinding units and one blending unit, and also operates 49 Ready Mixed Concrete (RMX) plants across India. The company intends to continue investing to expand the capacity of its existing cement plants, RMX plants and mines, and establishing additional grinding units.

It is also in the process of implementing clinker de-bottlenecking at some of its integrated cement units and capacity expansion at cement grinding units at Jojobera Cement Plant and Bhabua Cement Plant, the company said in the filing.

Nuvoco Vistas’s IPO would bring the Nirma Group back to the bourses, as it had delisted the flagship company Nirma in 2012.

Published on May 06, 2021

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