Nuvoco Vistas Corp Ends 6.8% Lower On Stock Market Debut
The cement company's offer emerged as the second-least subscribed issue so far this year.
Shares of Nuvoco Vistas Corp. fell on market debut after the Nirma group company’s Rs 5,000-crore initial public offering emerged as the second-least subscribed issue so far this year.
The stock listed at Rs 471 apiece on the BSE, a 17.4% discount to its IPO price of Rs 570. Thereafter, it hit an intraday high of Rs 550 and closed at Rs 531.30, down 6.8%.
The company joined a flurry of IPOs in the Indian market this year. The amount of money raised in IPOs in 2021 has reached $9.8 billion, already surpassing the totals of the past three years though it’s only August. Newly listed Indian stocks are beating the benchmark Nifty 50 Index by the most in seven years.
The maiden float got off to a slow start and eventually garnered 1.71 times subscription on the final day of the bidding. The fifth-largest Indian cement maker was seeking a valuation of Rs 20,357 core at the upper end of its Rs 560-570 apiece price band.
The company plans to use the IPO proceeds to pare debt worth Rs 1,350 crore. It had total borrowings of Rs 7,642 crore as on March 31.