Nuvoco Vistas Corporation's initial public offering (IPO) received a lukewarm response on Monday, the first day of the bidding process. The IPO was subscribed less than 11 percent so far.

Share Market Live

NSE

By afternoon, the IPO received a total of 68.30 lakh bids, marking a 10.93 percent subscription compared with the issue size of 6.25 crore shares.

Shares under the Rs 5,000-crore IPO of Mumbai-based Nuvoco -- a Nirma group company -- are being offered in the price band of Rs 560-570. The issue will close on Wednesday, August 11.

Investors can bid for shares in the multiples of 26 units. At the upper end of the price band, one lot will cost them Rs 14,820.

Also read: Nuvoco Vistas aims to raise EBITDA/tonne by 25%

The IPO comprises fresh issuance of 263.16 lakh shares, worth Rs 1,500 crore, and an offer for sale (OFS) of 614.04 lakh shares, worth Rs 3,500 crore.

Also read: Nuvoco Vistas IPO vs CarTrade IPO: Which is a better investment bet?

While 50 percent of the issue is reserved for qualified institutional buyers (QIBs), 15 percent is reserved for non-institutional investors and 35 percent for retail investors.

The company aims to use the proceeds from the IPO towards the repayment, prepayment or redemption of certain borrowings, and for general corporate purposes.

Also read: Nuvoco Vistas IPO opens; here are the key things to know before investing

Among the brokerages bullish on the issue are Anand Rathi, Religare Broking and IDBI Capital.

Also read: What brokerages say on the Nuvoco Vistas Corporation IPO