Cement manufacturer Nuvoco Vistas Corporation Ltd, part of the Nirma Group, has raised Rs 1,500 crore from anchor investors ahead of its initial share sale, which opens for public subscription on Monday.
The company has decided to allocate 2.63 crore equity shares to anchor investors at Rs 570 apiece aggregating the transaction size to Rs 1,500 crore, according to a circular uploaded late evening on Friday on BSE website.
HDFC Life Insurance Company, SBI Life Insurance Company, SBI Mutual Fund (MF), Axis MF, Mirae MF, Franklin Templeton MF, Premji Invest and SBI Pension Fund among others were domestic investors that participated in the anchor book.
Among the foreign portfolio investors participants were APG AM, CI Funds, TT International, Carmignac, and Wells Capital.
The initial public offering (IPO) comprises fresh issue of shares worth Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise.
The public issue, with price band of Rs 560-570 a share, will open for subscription on August 9 and conclude on August 11.
Proceeds of the fresh issue will be used to repayment of certain loans availed the company and general corporate purpose.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Investors can bid for a minimum of 26 equity shares and in multiples of 26 equity shares thereafter.
Nuvoco Vistas is a cement manufacturer with a consolidated capacity of 22.32 million metric tonnes per annum (MMTPA). It has 11 cement plants comprising five integrated units, five grinding units and one blending unit.
It operates cement manufacturing units in Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana.
The company's leadership team is led by Hiren Patel, Chairman and Non-Executive Director and Jayakumar Krishnaswamy, Managing Director.
Nuvoco Vistas, formerly Lafarge India Limited, in February 2020 announced that it will acquire the 8.3 million tonne per annum cement business of Emami for an enterprise value Rs 5,500 crore. The deal was approved by Competition Commission of India (CCI) in May 2020.
ICICI Securities, Axis Capital, JSBC Securities and Capital Markets (India) Private Limited J.P. Morgan India and SBI Capital Markets are the merchant bankers. The company's equity shares will be listed on the BSE and the NSE.
Founded by Karsanbhai Patel, Nirma Limited is one of India's diversified conglomerates with businesses across industrial and consumer products ranging from soaps and detergents, salt, soda ash, caustic soda and other chemicals. The company was delisted on the BSE and the NSE in 2011.
