Nova Agritech Limited's IPO to commence trading on Jan 22, with equity share price set at ₹39-₹41
The subscription period will run from January 22 to Jan 24, allowing investors to bid for a minimum of 365 Equity Shares
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Hyderabad: Nova Agritech Limited, a leading manufacturer of agricultural inputs specializing in soil health management, crop nutrition, and ecologically sustainable crop protection products, announced the pricing details for its Initial Public Offering (IPO) scheduled to open on Monday, January 22, 2024.
The company, founded in 2007 with a mission to provide comprehensive solutions for farmers, has established a price band of ₹39 to ₹41 per Equity Share for its maiden IPO. The subscription period will run from January 22 to January 24, 2024, allowing investors to bid for a minimum of 365 Equity Shares, with subsequent bids in multiples of 365 Equity Shares.
The IPO, consisting of a fresh issue of equity shares totalling up to Rs 112 crore and an offer-for-sale (OFS) of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao, is poised to be a significant event in the agricultural sector.
Proceeds from the fresh issuance will be allocated for strategic purposes, including investments in subsidiary Nova Agri Sciences Private Limited for a new formulation plant, funding capital expenditure and working capital requirements, and general corporate purposes.
Nova Agritech Limited boasts a diverse product portfolio, covering soil health management, crop nutrition, biostimulant and pesticide products, Integrated Pest Management (IPM), and crop protection products. As of November 30, 2023, the company holds an impressive total of 720 product registrations.
With a vast dealer network spanning 16 states in India and collaborations in Bangladesh, Sri Lanka, and Vietnam pending regulatory approval, Nova Agritech has demonstrated robust financial performance. For the fiscal year 2022-23, the company reported a 13.47% increase in revenue from operations, reaching Rs 210.55 crore. Profit after tax also surged by 49.69% to Rs 20.49 crore.
For the six months ending September 30, 2023, Nova Agritech recorded revenue from operations at Rs 103.22 crore and a profit after tax of Rs 10.38 crore, reinforcing its financial stability.
The IPO is being managed by Keynote Financial Services Limited and Bajaj Capital Limited, with the issue size estimated between Rs 142.26 crore and Rs 143.81 crore based on the lower and upper ends of the price band. Investors are eagerly anticipating the commencement of trading, as Nova Agritech Limited positions itself as a key player in the agricultural solutions market.
