Nuvoco Vistas Corporation IPO: Strong promoter backing, suitable for long-term investment; should you APPLY for LISTING GAINS? This is what Anil Singhvi says

Nuvoco Vistas Corporation IPO – The Initial Public Offering (IPO) of Nuvoco Vistas Corporation opened today, August 9. The three-day IPO will close on 11th August 2021. The promoter of this cement company is Karsanbhai Patel, who is a billionaire businessman and promoter of Nirma Group. Zee Business Managing Editor gives his take on the company and also advises the investors to do this with the public issue of Nuvoco Vistas Corporation.  

The Market Guru said that people who are planning to invest for short term or for listing gains should refrain from investing in this IPO. Investors with a long-term view on this company must only apply, he added saying that the view should at least be for 3 years.  

See Zee Business Live TV Streaming Below:

He said that the promoter of this company is very strong and cement as a sector is also doing well. There is no issue with the demand situation. The company has been growing inorganically as it has been buying other companies. 

The negatives, however, are in terms of its entire focus only in northern and eastern parts of the country. The price of cement in this geographical area is lowest in the country, Singhvi said. This does not give them enough pricing power, he further said.  

Another issue is that this company has debts on its books because of its inorganic growth plans.  

The valuations of the shares are quite expensive in terms of revenue growth and market cap, the Market Guru said. There are many alternatives to this cement company, he further said. 

He said that the Nuvoco Vistas Corporation is a good company with strong promoter. But investors can avoid this issue if the purpose is listing gains or the view is short term, Singhvi said.  

Issue Size - The IPO comprises of equity shares aggregating up to Rs 5,000 cr out of which fresh issue comprises of shares aggregating up to Rs 1,500 cr and an Offer for Sale (OFS) of up to Rs 3,500 cr (including Anchor portion of 26,315,788 equity shares) 

Watch Zee Business Tweet Video Below:

आज से खुलेगा न्यूवोको विस्तास का IPO

कंपनी के लिए क्या है Good, क्या Bad?

इश्यू में पैसे लगाएं या नहीं?

देखिए अनिल सिंघवी का ये वीडियो...#EditorsTake #NuvocoVistas #NuvocoVistasPO #IPO @AnilSinghvi_ pic.twitter.com/SU9qz6Pxj5

— Zee Business (@ZeeBusiness) August 9, 2021

Nuvoco Vistas Corporation IPO - Key Details 

- Symbol - NUVOCO 

- Issue Period - 9 August 2021 to 11 August 2021 

- Post issue Modification Period - 12 August 2021 between 10 am and 11 am 

- Cut-off time for UPI Mandate Confirmation - 12 August 2021 up to 12 pm 

- Issue Type - 100 per cent Book Building 

- Price Range      Rs 560 to Rs 570 

- Face Value is    Rs 10 while the Ticket Size is Re 1 

- Bid Lot - 26 equity shares and in multiples thereof and the minimum order quantity is 1 lot or 26 shares 26. 

- Maximum Subscription Amount for Retail Investor is Rs 2 lakhs 

- Maximum Bid Quantity for QIB Investors is 62,499,996 equity shares in multiple of 26 equity shares (Calculated at lower end of the Price Band). Maximum bid quantity for non-institutional investors (NIIs) is 44,642,858 equity shares in multiple of 26 Equity Shares. 

- IPO Market Timings - 10 am to 5 pm 

The Book Running Lead Managers (BRLM) for this issue are ICICI Securities Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and SBI Capital Markets Limited. The sponsor bank is Axis Bank Limited. 

The name of the registrar for this issue is Link Intime India Private Limited.