Nova AgriTech’s initial public offering (IPO) will begin on Tuesday, January 23, 2024. The market holiday on Monday caused the IPO to be postponed by one day, so it will now end on Thursday, January 25. With a lot size of 365 equity shares and its multiples after that, the corporation has set its price range at Rs 39–41 per share.
Overview of Nova AgriTech’s IPO
Nova AgriTech, headquartered in Hyderabad, specializes in soil health, plant nutrition, and crop protection. The IPO aims to raise Rs 143.81 crore through a primary offering, consisting of a fresh share sale of Rs 112 crore and an offer-for-sale of up to 77.58 lakh equity shares by Nutalapati Venkatasubbarao worth Rs 31.81 crore. The lot size is 365 equity shares, with multiples thereafter.
Utilization of Funds
The net proceeds from the IPO’s fresh issue are earmarked for critical purposes. Nova AgriTech plans to invest in its subsidiary, Nova Agri Sciences, for a new formulation plant, fund Capital Expenditure for expanding the existing formulation plant, and cover general corporate expenses.
A Wide Range of Products
Products for soil health, crop nutrition, integrated pest management, biostimulants, biopesticides, novel technologies, and crop protection are just a few of the many product categories that make Nova AgriTech unique. Product development for crop protection is the main goal of its subsidiary, Nova Agri Sciences.
Financial Performance
As of September 30, 2023, Nova AgriTech reported a net profit of Rs 10.38 crore, with a total revenue of Rs 103.24 crore. For the financial year ending March 31, 2023, the company achieved a profit-after-tax of Rs 20.49 crore and a revenue of Rs 210.93 crore, showcasing consistent growth.
IPO Reservation Details
The IPO allocates 50% of shares for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.
Key Players in the IPO
Keynote Financial Services and Bajaj Capital serve as the book running lead managers, with Bigshare Services acting as the registrar. Nova AgriTech’s shares are scheduled to be listed on both BSE and NSE on January 30, 2024.
Expert Ratings on Nova AgriTech IPO
Arihant Capital Markets: Neutral
Arihant Capital Markets offers a neutral rating, citing Nova AgriTech’s promising agri-input portfolio and strategic expansion. However, caution is advised due to the sector’s challenges.
Swastika Investmart: Subscribe
Swastika Investmart recommends subscribing, acknowledging Nova AgriTech’s strong global presence, effective marketing, and impressive financial performance.
Anand Rathi Research: Subscribe for Long Term
Anand Rathi Research supports a long-term subscription, emphasizing Nova AgriTech’s dedicated R&D facility and fairly priced valuations.
StoxBox by BP Equities: Subscribe
StoxBox advocates subscription, highlighting Nova AgriTech’s potential sustained profitability and relatively low PE ratio compared to industry peers.
Ventura Securities: Subscribe
Ventura Securities suggests subscribing, applauding Nova AgriTech’s extensive dealer network and farmer outreach programs, showcasing commitment and strategic expansion.