Nova Agritech Ltd’s IPO opens on January 22, 2024

Ahmedabad: Agri-input manufacturer, Nova Agritech Limited (“the Company”) which offers soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, has fixed the price band of Rs 39/- to Rs 41/- per Equity Share of face value Rs 2/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, January 22, 2024, for subscription and close on Wednesday, January 24, 2024. Investors can bid for a minimum of 365 Equity Shares and in multiples of 365 Equity Shares thereafter, the company announced.

As per the press statement of the company, “The issue consists of a fresh issue of equity shares aggregating to Rs 11,200 Lakhs and an offer-for-sale (OFS) of up to 77,58,620 equity shares by the selling shareholder Nutalapati Venkatasubbarao.”

“Out of the net proceeds from the fresh issue, an amount of Rs 1,420.11 Lakhs will be utilised for investment in its subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant, Rs 1,048.95 Lakhs for funding Capital Expenditure by the Company, towards expansion of its existing formulation plant, Rs 2,665.47 Lakhs for funding its working capital requirement of the Company, Rs 4,335.85 Lakhs for investment in its subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements and the balance amount from the net proceeds will be utilised for general corporate purposes,” the statement stated.

Accoring to the press statement, “Nova Agritech’s revenue from operations increased by 13.47% to Rs 21,055.54 Lakhs for the financial year 2022-23 from Rs 18,556.77 Lakhs for the financial year 2021-22, primarily on account of an increase in business volumes on the back of technical import registrations, foraying into new states like Tamil Nadu and consolidation of business in existing states namely, Telangana, Andhra Pradesh and Karnataka. Profit after tax increased by 49.69% to Rs 2,048.95 Lakhs for the financial year 2022-23 from Rs 1,368.93 Lakhs for the financial year 2021-22. For the six months ending September 30, 2023 revenue from operations stood at Rs 10,321.60 Lakhs and profit after tax stood at Rs 1038.22 Lakhs.”

Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue, the company said.