Nuvoco Vistas likely to be the next Big Ticket IPO to hit the market

Nuvoco Vistas may not be a well-known name in market circles, but it is already a formidable name in cement circles. Now SEBI has approved the proposal of Nuvoco Vistas IPO, which is expected to be worth Rs.5,000 crore. This will consist of a fresh issue of Rs.1,500 crore and an offer for sale to its owner, Nirma Ltd, worth Rs.3,500 crore. Interestingly, Nirma, which is the holding company of Nuvoco Vistas, itself was a listed company on the stock exchanges till 2012, when it voluntarily opted to delist.

Nuvoco Vistas is the 5th largest cement manufacturer in India with most of its growth coming inorganically. For example, it started off by buying the cement business of Tata Steel in 1999 and followed it up by buying the cement business of Raymond in 2000 and the RMC business of L&T in 2008. In 2016, it bought the Indian cement business of Lafarge Holcim while in 2020 it topped up its cement capacity by acquiring the cement business of Emami Ltd. The product portfolio of Nuvoco Vistas consists of 3 verticals viz. cement, RMC and modern building products.

Nuvoco Vistas has a current capacity of 22.32 million TPA of cement, making it the fifth-largest player in India with over 50 products. Further expansions are underway at its plants in Jojobera and Bhabua. While the OFS will help Nirma to monetize its cement franchise partially, the fresh issue component will be used for expansion and for debt reduction. Cement companies have had a fabulous time on the bourses with rising volumes and stable to improving pricing. With the SEBI approval done and only the ROC filing left, the issue can be expected in the first half of August.