The previous large week for an IPO mobilisation was March 2-6, 2020 when SBI Cards raised 10,355 crore. A combination of easy availability of funds globally, a stock market that is recording a new peak on a regular basis and strong listing gains have combined to prompt promoters, merchant bankers and private equity investors to take companies public, industry players said. During the current week, Nuvoco Vista Corp is raising 5,000 crore through its IPO, which is the first such offer from a cement company in the last one and half decades. Nuvoco Vista is majority owned by Karsanbhai Patel who is also the owner of Nirma detergent. Its aim to raise 5,000 crore would make it the second-biggest IPO this year after Zomato’s. The last IPO of a cement company was launched in 2006 when JK Cement went public.
Nuvoco Vista is the fifth largest cement company in India and the biggest in eastern India. The shares are being offered at a price band of 560-570 per share. The IPO will close on August 11. According to a report by IIFL Securities, “given NVCL’s size, strong brand ownership, leadership position in the fast-growing eastern Indian market, availability of limestone mines for future expansion, and scope for improving profitability & deleveraging balance sheet, we believe valuations are reasonable. We recommend subscribing to the IPO.” Along with Nuvoco, three other IPOs are also open now. The IPO for CarTrade is for a tech-enable auto listing company while for Chemplast Sanmar, a speciality chemical company, it’s the second coming to be publicly listed after being delisted about 10 years ago. The IPO for Aptus Value Housing is for a mortgage finance company serving mid- and low-income segments.
