Nuvoco Vistas Corp makes a weak stock market debut; lists at 17% discount on exchanges
Aug 23, 2021, 10:06 IST
- Shares of Nuvoco Vistas Corp listed at ₹471 while the price band was fixed at ₹560-570 per share.
- The IPO was subscribed just 1.71 times on the last day of the bidding.
- The market capitalisation of the company stood at ₹16,822.05 crore.
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Shares of cement manufacturer Nuvoco Vistas Corp made a weak listing on the National Stock Exchange (NSE) and BSE as the stock listed at 17.37% discount on the issue price band of ₹560-570 apiece. Investors had expected a negative listing after the CarTrade Tech IPO had also opened at discount last week because of weak momentum in the market led by global cues. Post listing, the market capitalisation of the company stood at ₹16,822.05 crore, according to BSE data.
The shares of Nuvoco Vistas Corp were trading at ₹510, lower by 10.53% at 10.00 a.m., on August 23.
The grey market had hinted at a negative listing as unlisted shares of Nuvoco Vistas were commanding a marginal premium of ₹5-6 per share over the issue price of ₹570 apiece.
The IPO — open between August 9 and August 11 — received tepid response from investors. It was subscribed 1.71 times on the last day of the bidding.
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It is also one of the leading ready mix concrete manufacturers in India and has grown from being a cement focused entity to now a building materials company offering more than 50 products across cement, ready mix concrete and modern building materials sold under well-established brand names such as Concreto, Duraguard, Double Bull, ZeroM and Instamix.
Analysts had recommended subscribing to the IPO issue as they are bullish on the overall cement industry. Adding to it is the fact that the company holds a dominant position in east India with 17% market share in terms of capacity.
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