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Home / Markets / Ipo /  Nuvoco Vistas ends 6.8% lower on debut

MUMBAI : Shares of Nirma Group cement company Nuvoco Vistas Corp. Ltd made a weak debut on Monday, after an initial public offering (IPO) that was the second least subscribed issue of 2021.

The stock opened at 471 and touched a high of 550 and a low of 471. It closed at 531.30 on BSE, down 6.8% from its issue price of 570. The IPO was subscribed over 1.71 times last week. Earlier, Sona Comstar had got 2.28 times subscription in June. The IPO included a fresh issue of 1,500 crore and an offer for sale of 3,500 crore by its promoter entity Niyogi Enterprise Pvt. Ltd. Niyogi Enterprises holds 86.56% stake in the company.

Nuvoco Vistas, the fifth-largest cement company in India, began its journey after acquiring the Indian cement business of Lafarge Holcim in 2016 for $1.4 billion. In 2020, it inked a $770 million deal to buy the cement assets of Emami Group.

The firm’s cement plants are located in West Bengal, Bihar, Odisha, Chhattisgarh, and Jharkhand in east India and Rajasthan and Haryana in north India, while RMX plants are located across India. Currently, its cement plants have an installed capacity of 22.32 MMTPA, and it operates 49 RMX plants. “Nuvoco has aggressively added capacities in the East and provides good exposure to the cement sector. Improved profitability post the integration of the Emami unit and deleveraging over the next few years would be the key triggers for the stock", said Milan Desai, lead equity analyst, Angel Broking.

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