The public offer comprises of a fund raise via a fresh issuance of shares amounting aggregating up to Rs. 1500 crores and an Offer for Sale aggregating up to Rs. 3500 crores by the Promoter Selling Shareholder.
As stated in the DRHP, out of the net proceeds the company looks to deleverage its balance sheet by paring off Rs. 1350 crores of certain borrowings availed by the company besides general corporate purposes
Nuvoco Vistas, in terms of its manufacturing capacity stands to be the 5th Largest Cement Company in India and the largest cement company in East India. It also is one of the leading ready mix concrete manufacturers in India and has grown from being a cement focused entity to now a building materials company offering more than 50 products across Cement, Ready Mix Concrete and Modern Building Materials sold under well-established brand names such as Concreto, Duraguard, Double Bull, ZeroM and Instamix”.
As of December 31, 2020 its 11 Integrated/Blending units across East and North India had an installed cement manufacturing capacity of 22.32 MMTPA. Additional expansion of 1.5 & 1.2 MMTPA is underway at its Jojobera and Bhabua Cement Plant. Post-acquisition of Nu Vista and merger of the Nimbol Cement Plant, the companies installed capacity in percentage terms doubled over the last 5 years to make it the fastest growing cement company in terms of capacity addition.
Between FY18-20, the companies EBITA and PAT for the year grew at CAGR of 9% and 68.7% respectively.
The Central government’s focus on roads, railways, urban infrastructure and irrigation will boost infrastructure investments. The share of cement demand of the infrastructure segment is expected to increase from 23 to 25% in Fiscal 2021 to 25 to 27% in Fiscal 2026. Key brokerage houses like Prabhudas Lilladher and Reliance Securities added that all-India average price is expected to have improved by strong 5.2% quarter-on-quarter (up 1.5% year-on-year) in first quarter of FY22E, mainly aided by sharp improvement in Southern region (up 9.9% QoQ), Eastern (up 7.4% QoQ) and Western (up 5.8% QoQ). This was despite the second covid wave and localized lockdowns.
Investment Bankers appointed to the issue are ICICI Securities Ltd, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JP Morgan India Private Limited and SBI Capital Markets Limited.