Nirma Group’s cement company, Nuvoco Vistas Corp. Ltd, on Thursday filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise Rs5,000 crore through an initial public offering (IPO).
The IPO will comprise a fresh issue of Rs1,500 crore and an offer for sale of Rs3,500 crore by its promoter entity Niyogi Enterprise Pvt. Ltd. Niyogi Enterprises holds 86.56% stake in the company.
As of March 2021, total borrowings (long-term and short-term) of the company stood at Rs7,642.18 crore.
For fiscal year 2020, Nuvoco Vistas’ revenue from operation stood at Rs6,793.24 crore versus Rs7,052.13 crore a year ago. Net profit for the period was at Rs249.26 crore against a loss of Rs26.49 crore. For the nine months ended December 2020, the firm reported revenue of Rs4,857.22 crore against a net loss of Rs63.45 crore.
ICICI Securities Ltd, Axis Capital, HSBC Securities and Capital markets India, JP Morgan India and SBI Capital Markets are the lead managers to the issue.
Nuvoco Vistas Corp., the fifth largest cement company in India, began its journey after acquiring the Indian cement business of LafargeHolcim in 2016 for $1.4 billion. In 2020, it inked a $770 million deal to buy the cement assets of Emami Group.
Its cement plants are located in West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in east India and Rajasthan and Haryana in north India, while ready mix concrete (RMX) Plants are located across India.