Nuvoco lists at a steep discount to issue price

Cement maker Nuvoco Vistas Corporation made a weak debut on the bourses. The stock got listed at ~531, a discount of 17.3 per cent over its issue price. The stock gained a little through the day and eventually closed the session at ~531.30, a 6.8 per cent discount to its issue price. Post listing, the company commands a market capitalisation of ~18,975 crore.

Its ~5,000-crore initial public offering (IPO) comprised a fresh issue of ~1,500 crore and an offer for sale of ~3,500 crore. And the IPO was subscribed 1.71 times. The institutional portion was subscribed 4.2 times, the high net worth individual portion (HNI) 0.66 times, and the retail portion 0.73 times.

The company plans to utilise the net proceeds of the fresh issue towards repayment of its borrowings. Nuvoco is part of the Nirma group and is the fifth largest cement company in India and the largest in East India in terms of capacity, according to a CRISIL report.