Nova Agritech IPO subscribed 7.21 times

Published on Jan 23, 2024 17:09

The initial public offer (IPO) of Nova Agritech received bids for 24,68,85,635 shares as against 2,54,14,746 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (23 January 2024). The issue was subscribed 9.71 times.

The issue opened for bidding on Tuesday (23 January 2024) and it will close on Thursday (25 January 2024). The price band of the IPO is fixed at Rs 39-41 per share. An investor can bid for a minimum of 365 equity shares and in multiples thereof.

The offer comprises of fresh issue of equity shares aggregating up to Rs 112 crore and offer for sale of up to 77,58,620 equity shares.

The company proposes to utilize the net proceeds from the fresh issue to invest in its subsidiary, NASPL, for settingup a new formulation plant, amounting to Rs 14.20 crore; funding capital expenditure for expansion of its existing formulation plant, amounting to Rs 10.49 crore; funding working capital requirement amounting to Rs 26.65 crore; and investment in its subsidiary, NASPL, for funding working capital requirement amounting to Rs 43.36 crore.

Ahead of the IPO, Nova Agritech on Friday, 19 January 2024, raised Rs 43.14 crore from anchor investors. The board allotted 1.05 crore shares at Rs 41 each to 4 anchor investors.

Incorporated in 2007, Nova Agritech is an agri-input manufacturer offering soil health management, crop nutrition and crop protection products focused on tech-based farmer-driven solutions. The company offers ecologically sustainable and nutritionally balanced products based on its research and development.

The company manufactures, distributes and markets a wide range of product categories consisting of soil health management products like organic fertilizers, bio fertilizers and soil conditioners, crop nutrition products like 100% water soluble NPK (nitrogen, phosphorous and potassium) fertilizers, micronutrient fertilizers, beneficial element fertilizes, straight nitrogen fertilizers, straight potash fertilizers and bio stimulant products, bio pesticide products, integrated pest management (IPM) products, new technologies and crop protection products. Currently, crop protection products are manufactured by subsidiary Nova Agri Sciences.

The firm reported a net profit of Rs 10.38 crore and total income of Rs 103.22 crore for the six months ended on 30 June 2023.