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Nova Agritech is set to launch its Initial Public Offering (IPO) on January 22, with the subscription period extending until January 24. The IPO comprises a fresh issuance of shares amounting to Rs 112 crore and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao, the sole public shareholder in the agri-input manufacturing company. Notably, the promoters currently hold an 84.27 percent stake in Nova Agritech.

Key Details:

Subscription Period: The Nova Agritech IPO will be open for subscription from January 22 to January 24, with the pricing details expected to be disclosed soon.

Anchor Book Opening: The anchor book for the IPO will be available for a single day on January 19, a day prior to the IPO opening.

Offer Structure: The IPO incorporates a combination of a fresh issue of shares worth Rs 112 crore and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao, facilitating the exit of the only public shareholder.

Financial Performance:

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Nova Agritech has exhibited robust financial performance, recording a consolidated net profit growth of 49.7 percent YoY to Rs 20.5 crore for the fiscal year ending March FY23. During the same period, the revenue increased by 13.4 percent to Rs 210.6 crore. The six-month period ending September FY24 saw the company achieve a consolidated net profit of Rs 10.4 crore on revenue of Rs 103.22 crore.

Product Registrations: The company has secured a total of 720 product registrations, encompassing various categories such as soil health management, crop nutrition, crop protection, bio-pesticides, and technical indigenous manufacture.

Geographical Revenue Distribution: While Nova Agritech boasts a dealer network spanning 16 states in India, a significant portion of its business, 55 percent in FY23 and 76 percent in 1HFY24, is attributed to Telangana. Additional contributions come from Andhra Pradesh (14.7 percent), Karnataka (6.7 percent), and the remaining 24 percent from other states.

IPO Allocation: The IPO size has allocated 50 percent for qualified institutional buyers, 15 percent for non-institutional investors (high-net-worth individuals), and the remaining 35 percent for retail investors.

Basis of Allotment: Nova Agritech is expected to finalize the basis of allotment by January 25, with successful investors anticipated to receive the equity shares in their demat accounts by January 29.

Listing Date: Trading in Nova Agritech’s equity shares is scheduled to commence on both the BSE and NSE from January 30.

Merchant Bankers: Keynote Financial Services and Bajaj Capital serve as the merchant bankers for the IPO.

The Nova Agritech IPO follows the recent trend of IPOs in the current month, succeeding offerings by Jyoti CNC Automation, Medi Assist Healthcare Services, and Epack Durable. Investors are keenly watching the subscription response and subsequent market performance as the company enters the public domain.

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