Nuvoco Vistas made a very disappointing debut on the markets today. As against the IPO price of Rs.570, the stock got listed on the BSE at Rs.471 but recovered from there to rise up to Rs.550, which is still below the IPO price.
The cement manufacturer IPO, part of the Nirma Group, was subscribed 1.71 times, with the Retail Investors portion getting subscribed 73%, HNIs by 66% and QIBs by 4.23 times.
In our IPO Analysis, this is the only stock where we had gone on to advice applying as its fundamentals are very strong. We had concluded, “High Growth Visibility, Strong Sector Outlook and Undemanding Valuation makes this IPO an excellent and quality mid-cap pick, both from the short term and portfolio holding point of view. Apply for Nuvoco!”
That’s probably why we have seen buying into the stock at the lower levels.