Despite the strong upsides for the cement sector in India, Nuvoco Vistas failed to make an impressive debut on the bourses.
To elaborate, the shares of Nuvoco Vistas were listed at Rs. 485 apiece on NSE. The issue price of this share was Rs. 570 a piece, which means shares were listed on the stock exchange at a discount of 15%.
Similarly, this stock garnered an underwhelming response on BSE as well. As a result, Nuvoco shares opened at Rs. 471, which was 17% lower than its issue price.
Here’s more on this lacklustre turn of events.
Nuvoco Vistas IPO – In Retrospect
Nuvoco Vistas shares registered a negative grey market premium ahead of its listing. It is assumed that the weak sentiment of the market and poor performance of most of the recently launched IPOs have dampened Nuvoco Vistas’ GMP before its listing.
For instance, Nuvoco Vistas shares traded at a marginal GMP of Rs. 5 – Rs. 6 over its issue price before its stock market debut. The weakened GMP had already predicted a downward trend for shares before listing on bourses.
Interestingly, its IPO had performed significantly well across all investor categories. Here is a quick summary of its IPO performance:
- Nuvoco received bids for 107 million equity shares against a total of 62.5 million shares.
- QIB portion was subscribed 4.2 times, whereas the non-institutional and retail investor portions were subscribed 0.66 and 0.73 times, respectively.
- This is the first IPO that was launched in the second half of this year, where the retail portion of the offer was subscribed less than 100%.
Despite its tepid start on the bourses, Nuvoco Vistas continues to serve as a lucrative investment avenue for those who wish to park money in the thriving cement sector.
This 5th largest cement manufacturing company in India is well-positioned to tap into the demand for residential and commercial properties.
In fact, the boost in demand for affordable housing projects coupled with key infrastructure development continues to act as fodder for this market leader. Moreover, Nuvoco’s business model, diversified product profile, and vast distribution network allow it to generate sustainable earnings and boost organic growth.
Hence, it can be said that Nuvoco is definitely among the top avenues to park money if investors are willing to speculate on the growth of real estate and infrastructure segments.
Regardless, it is recommended to carry out a thorough market analysis coupled with in-depth research about the prospects and limitations of the company. Keep an eye on Angle One blogs to stay updated with the latest IPO and stock market news and updates.
Frequently Asked Questions
- What is the market capitalisation of Nuvoco Vistas?
At the time of writing, the market capitalisation of Nuvoco Vistas was Rs. 19,390.01 crores.
- How well-distributed is the network of Nuvoco Vistas?
Nuvoco Vistas has a robust network of 15,969 dealers. It also has nearly 225 carrying and forwarding agents.
- What is the total number of shares of Nuvoco Vistas?
The total number of Nuvoco Vistas shares stands at 35.72 crores.
- How much does Nuvoco Vistas owe?
At the time of writing this, Nuvoco Vistas’ debt stands at Rs. 4,463.27 crores.
- What is Nuvoco Vistas share’s face value?
The face value of Nuvoco Vistas shares is Rs. 10 apiece.