Nuvoco Vistas seemingly to file DRHP for Rs 5,000 crore IPO this week

MUMBAI: Nirma Neighborhood’s cement company, Nuvoco Vistas Corp, is seemingly to file its draft red herring prospectus (DRHP) this week for its maiden initial public provide (IPO) that would perchance well well boost about Rs 5,000 crore. Nuvoco began its rush after having obtained the erstwhile LaFarge’s vegetation in India.

The IPO involves a unique subject of Rs 1,400-1,500 crore and an provide for sale of Rs 3500 crore by the promoters, primarily based totally on market sources.

Nuvoco didn’t retort to ET’s queries.

ICICI Securities,

, HSBC Securities, JP Morgan and SBI Capital Markets are the investment bankers for the subject.

The company is asking at a valuation of Rs 35,000 crore after checklist, which is the an identical as

’s most fresh market capitalization. The head three cement companies - UltraTech, Shree Cement and Ambuja - are for the time being valued at Rs 1.82 lakh crore, Rs 1 lakh crore and Rs 61,000 crore, respectively.

Nuvoco Vistas, formerly identified as Lafarge India, has a convincing presence in the east. It is searching to deleverage its steadiness sheet by slicing its debt during the fund raised from the IPO. As on March 31, 2020, the company had a complete borrowing of Rs 4,463 crore.

Nirma Neighborhood forayed into the cement swap in 2014 through a greenfield investment in a plant at Nimbol and thereafter grew the swap with the acquisition of Larfarge’s India Cement swap in 2016. In 2020, the company obtained Emami Cement. Collectively, the acquisitions and mergers possess almost doubled its cement manufacturing capability and elevated the reach of its distribution.

Nirma’s Karsanbhai Patel and his family owns 100% stake in Nuvoco Vistas. The company owned 7 vegetation as of March 2020 with a cumulative capability of 14 mt. The company also owns 60 ready-mix concrete vegetation.

The company’s rising stylish constructing subject matter products swap is a key differentiator and it sells a huge series of products such as construction chemical substances, tile adhesives, wall putty, dry plaster, cloak blocks and appealing-mix dry concrete. It competes with national avid gamers such as Ultratech Cement, LH Neighborhood,

Ltd and Shree Cement.

For the three hundred and sixty five days ended March 31, 2020, the company has posted a acquire profit of Rs 249 crore when put next with a loss of Rs 23.80 crore in FY19. On the other hand, the company's acquire sales dropped 4% to Rs 6,793 crores in FY20 when put next with Rs 7053 crores in FY19.

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