Similar apprehensions are being raised about Nuvoco Vistas after the faint listing of Car trade Tech’s IPO. Nuvoco Vistas will be listed on August 23, 2021. The IPO of Aptus Value Housing Finance India and ChemPlast Sanmar will be listed on August 24.
Nuvoco Vistas shares are selling at a discount in the gray market
The Rs 5000 crore IPO of Nuvoco Vistas was subscribed 1.71 times. Its price band was Rs 560-570. In the primary market, its shares are selling below the IPO price. Its shares are being sold in the gray market at Rs 556 with a discount of 2.5 percent. Post the listing, Nuvoco will also join the league of UltraTech Cement, Shree Cement, Ambuja Cement and ACC Cement.
Abhay Doshi, founder of UnlistedArena.com, a company that deals in pre-IPO and unlisted shares, says that in view of the correction in the primary and secondary markets, there is a period of weak listing in the market. Therefore, the listing of its shares at a discount cannot be ruled out. The stock has recovered its full value at 17xEV/EBITDA. There is no special benefit for investors in this now. This issue seemed to fade from the beginning. The sentiment has worsened due to the sluggish listing of IPOs recently.
CarTrade Tech Listing: CarTrade Tech has a poor start in the market, investors do not get any listing gains
This stock can prove to be better for long term
Likita Chhepa, Senior Research Analyst, CapitalVia Global Researh, says that even though the issue may not generate much listing gains, its shares can give good returns in the long term, given the company’s strong brand value. The capacity of the company may increase further. With focus on infra, decline in debt and improvement in profitability along with margins, the prospects look good in this stock ahead. Nirma Group’s cement company Nuvoco Vistas has five integrated cement plants. The company has units in Chhattisgarh, Jharkhand, West Bengal, Rajasthan and Haryana.