Nuvoco Vistas ltd , Should you hold or sell it after listing of IPO?

                                   

Should you Hold or Sell Nuvoco Vistas ?

 Check Shares allotment:

Shares allotment of Nuvoco Vistas is finalised today on 17/08/2021. The refund will be made for unlucky bidders which is expected on 18th August 2021 & for lucky bidders will get  credit of Nuvoco Vistas e shares into their demate A/c  expected to take place on 20th August 2021. The bidderswho had applied for this IPO may follow these steps to check their share allotment status online in two ways

 Follow these steps for checking allotment status:

 Visit to BSE official website only

          OR

Visit to Nuvoco Vistas Official registrar of IPO  which is  Link Intime India Private Ltd.

Steps to follow:

•   Open the Website BSE or Link intime India private ltd
•   Select IPO name “Nuvoco Vistas ltd
•   Fill IPO Application Number
•   Tick on “no robot” box
•  Then press submit icon button
•  Now you will see the status of you IPO Allotment.

Should you Buy, Sell Or Hold after Listing of Nuvoco Vistas IPO:

Nuvoco Vistas company business is in cement sector and it is also running with average revenues and profit as compared with its competitors of cement sectoirs like, mangalam cement, India cement, Andhra cement, Ambuja Cement , Heidelberg cement , Zauri cement. If we will compare it with big name of the Cement sector like Acc cement, Ultra tec cement etc then it will not be a relevant. In the share price range of 560rs to 580rs, It looks overvalued. There is no any question that there is good growth in the infrastructure sector but the demand for the cement will give first preference to the big brand of this industry and having good presence in the rural areas of India.

If you got allotment into the IPO of this company then it is good but we may see good profit booking into its listing day If we will talk about the real premium of the Grey market then it is not more than the 4% to 5 % on listing gains. The good traders may book profit in to this stock on listing day.

Company business is doing good or e can say with the average performance in the domestic market in especially in East India with the capacity of more than 20MT metric tone . Even company management said that they will use raise money for expansion as well as in debt reduction process but still at the price range of 6560rs to 580rs its valuations looks stretched. It will be better to book profit and sit side. If you have not allotted IPO shares then do not feel unlucky cause you may get good valuation price in this stock at the lower price. Company future is not too bad but the valuation does matter in this market. The infrastructure story of India is still intact and demand for the cement will increase in coming years. For long term investors if they do not want to book profit or would  not able to book profit on listing day or  time then it will be very good to keep stop loss. Let the stock settle after the profit looking and then check the valuation of the company then setup your mind for  making any buying position in this stock. Otherwise there are many stocks are listed in the cement segment like Ultra tech cement, Acc cement and many more having good potential to give good profit outlook and growth outlook.  But all cement companies have already given good profit in the past so it is better to waut and watch for  the lower prices.

Subscription Rate of this IPO:

With the help or premium of qualified Institutional investors the certified institutional, It was oversubscribed by 4.23 occasions and non-institutional investors had made offers for 66% of their saved part and the retail segment was reserved 73%.

Market cap And Company Plans for fund-raising from the market:

The company intends to raise Rs 5,000 crore through its public offer involving a new issuance of Rs 1,500 crore and a proposal available to be purchased of Rs 3,500 crore by advertiser Niyogi Enterprise.

It worked at 75-80 percent use in Covid-hit FY21 and 93 percent in second 50% of FY21. The company is looking for a market cap close around Rs 20,400 crore in the IPO. 1500cr effectively raised from anchor Investors. Nuvoco Vistas means to use the net returns of Rs 1,350 crore from the new issue for reimbursing (to some extent or brimming with) specific borrowings and general corporate purposes.

 Brief Introduction of Company Business Model:

Nuvoco Vistas Corp. Ltd, is the fifth-biggest part in India and the biggest cement organization in East India, as far as limit, with a combined limit of 22.32 MMTPA.

Nuvoco Vistas Corp. Ltd, a Nirma Group organization, began activities in India in 1999 by means of acquisitions. Company has come up with the idea to establish cement business, by  obtaining of the India cement business brand of Lafarge Holcim, 2016 and NU Vista previously called Emami Cement Limitedin 2020. Today, we have developed from being exclusively cement based to a building materials organization with a dream to 'Fabricate a Safer, Smarter and Sustainable World'.

Orgnatization has  11 Cement Plants  in different  states:  

Odisha, Chhattisgarh , West Bengal, Jharkhand etc  in East India and Rajasthan and Haryana. Organization  Integrated plants are furnished with squander heat recuperation frameworks with an absolute limit of 44.7 MW, sunlight based force plants with a complete limit of 1.5 MW and hostage power plants with an age limit of 105 MW, which produces 47.74% (on a proforma premise) of our all out power necessities.

Our Construction Development and Innovation Center (CDIC) situated in Mumbai is certify by NABL (ISO/IEC17025 : 2017 Standards) and fills in as the brooding community for imaginative items across the Cement, Ready-Mix Concrete and Modern Building Materials organizations. It works in an exceptional office spread across 17,500 square feet region for creating and prototyping inventive items

Business portfolio:

Cement

Cement portfolio includes Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement under driving brands like Concreto, Duraguard, PSC, Nirmax, Double Bull, Infracem and Procem.

Ready-Mix Concrete (RMX)

RMX business has presence with almost 50 Plants offering particular items under the brands Concreto, Artiste, InstaMix and X-Con that are running projects is doing well as  Lodha World One, Amritsar Entry Gate are the few examples.

Modern Building Materials (MBM)

MBM items is a critical differentiator. It envelops expansion  in  synthetic substances, tile cements, divider clay, dry mortar, cover squares and ready-mix dry mixture which  sold under the brands 'Zero M' and 'Instamix'.

 Disclaimer: It is my Personal view on IPO listing of this company. Please do your own research before making any buying or selling in this stock.  Company Business profile data may have been collected from company website but the view on the Company listing is personal.