Nuvoco Vistas Corporation , a prominent player in the Indian cement industry, has announced a strategic fundraising initiative to partially finance its ambitious acquisition of Vadraj Cement. The company plans to raise Rs 1,200 crore through a combination of Compulsorily Convertible Debentures (CCDs) and Compulsorily Convertible Preference Shares (CCPS).

Acquisition Financing Strategy

The total cost of the Vadraj Cement acquisition is estimated at Rs 1,800 crore, with Nuvoco Vistas implementing a multi-faceted financing approach:

1. Initial Funding: The company will utilize bridge financing and long-term debt to kickstart the acquisition process.
2. Post-Acquisition Funding: Following the completion of the acquisition, Nuvoco Vistas intends to implement structured funding within Vadraj.

Fundraising Breakdown

This strategic move by Nuvoco Vistas signifies a major expansion in its cement operations. The acquisition of Vadraj Cement is expected to strengthen the company's market position and potentially increase its production capacity.

The use of convertible instruments like CCDs and CCPS for fundraising provides Nuvoco Vistas with flexibility in its capital structure while also offering potential upside to investors as the company grows post-acquisition.

As the cement industry in India continues to consolidate, this acquisition could be seen as a significant step for Nuvoco Vistas in enhancing its competitive edge in the market. The successful completion of this deal may have implications for the company's market share and operational synergies in the future.

Nuvoco Vistas Corp Ltd , a leading building materials company in India, has announced its financial results for the fourth quarter and fiscal year 2025, showcasing resilience and recovery in a challenging market environment.

Record-Breaking Q4 Performance

The company achieved its highest-ever quarterly consolidated EBITDA of ₹556.00 crore in Q4 FY25, marking a significant 12% year-on-year increase and more than doubling from the previous quarter. This robust performance was driven by strong volume growth and improved realizations.

Volume Growth and Revenue

Nuvoco Vistas reported a consolidated cement sales volume of 5.70 million metric tonnes (MMT) in Q4, up 8% year-on-year and 23% quarter-on-quarter. This contributed to a full-year volume of 19.40 MMT, representing a 3% increase from the previous fiscal year. The company's consolidated revenue from operations grew by 4% year-on-year to ₹3,042.00 crore in Q4, bringing the FY25 revenue to ₹10,357.00 crore.

Cost Efficiency and Deleveraging

Throughout FY25, Nuvoco maintained a sharp focus on operational excellence. The company achieved its lowest blended fuel cost in 14 quarters at ₹1.43 per Mcal, reinforcing its position among the industry's lowest in power and fuel costs. Additionally, Nuvoco continued its deleveraging initiative, reducing net debt by ₹390.00 crore year-on-year to ₹3,640.00 crore.

Strategic Expansion

The company received NCLT approval for the acquisition of Vadraj Cement Limited, which will enhance Nuvoco's cement capacity to 31 MMT by Q3 FY27. This strategic move is expected to strengthen the company's market position and expand its footprint in Western India.

Marketing Initiatives and Business Segments

Nuvoco undertook key marketing initiatives to enhance its brand presence, including:

• The 'Sarthi Programme at Maha Kumbh 2025'
• Launch of 'Sabse Khaas Pehelwaan', Haryana's premier wrestling championship
• Commencement of Duraguard Microfiber Cement production at its Haryana Cement Plant

The Ready Mix Concrete (RMX) business, with 58 operational plants, gained healthy momentum. The Modern Building Materials (MBM) segment experienced strong sales momentum across various products, contributing to overall growth.

Sustainability Commitment

Nuvoco Vistas continues to strengthen its commitment to sustainability, reporting the lowest carbon emissions in the industry at 457 kg CO2 per ton of cementitious materials.

Management Commentary

Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas Corp Ltd, stated:

"Despite a subdued demand environment in the first half of FY25, the Company witnessed a strong rebound in the second half. We remain optimistic about cement demand in the near to medium term. Our focus will be on scaling growth and expanding our market footprint, particularly with the Vadraj Cement acquisition elevating our capacity to 31 MMTPA by Q3 FY27."

As Nuvoco Vistas Corp Ltd navigates the evolving building materials landscape, its strong Q4 performance and strategic initiatives position the company for continued growth and market leadership in the coming years.