Nova Agritech IPO subscribed 109.36 times on Final Day

The Initial Public Offering of Nova Agritech Limited was subscribed 109.37 times on the final day of bidding; the highest in the calendar year 2024.

 

The issue received bids of 2,77,94,75,000 shares against the offered 2,54,14,746 equity shares, at a price band of ₹39-41, according to the data available on the stock exchanges.

 

Non-Institutional Investors Portion with 224.06 times, Retail Portion was subscribed 77.10 times, whereas Qualified Institutional Buyer Portion subscribed 79.31 times.

 

The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 112 crore and an offer-for-sale (OFS) of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao.

 

Keynote Financial Services Limited and Bajaj Capital Limited are the book-running lead managers and Bigshare Services Pvt Ltd is the registrar to the offer.

               

Company Information

 

Agri-input manufacturer, Nova Agritech Limited (“the Company”) which offers soil health management, crop nutrition and crop protection products focused on a tech-based farmer-driven solution approach. Incorporated in 2007 with an objective to become a one-stop solution provider for the farming community, the Company manufactures, distributes and markets a wide range of product categories consisting of soil health management products; crop nutrition products; bio stimulant products; bio pesticide products; Integrated Pest Management products; new technologies; and crop protection products.

 

As on November 30, 2023, the Company has received a total of 720 product registrations comprising of 7 registrations in the soil health management category, 176 registrations in the crop nutrition category, 4 registrations in bio pesticide category, 7 registrations under Technical Indigenous Manufacture and 526 registrations in the crop protection category. In addition to this, the Company has applied for 22 new registrations whereas its subsidiary Nova Agri Sciences Private Limited has applied for 14 new registrations for new products across various categories.

 

It has a total dealer network comprising of approximately 11,722 dealers out of which approximately 6,769 dealers are active to whom it has distributed and sold its products during the current financial year. Its dealer network is currently spread across 16 states of India. It has also entered into marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam and is currently awaiting the necessary permission to start business in these jurisdictions.

 

Nova Agritech’s revenue from operations increased by 13.47% to Rs 210.55 crore for the financial year 2022-23 from Rs 185.56 crore for the financial year 2020-21, 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 20.49 crore for the financial year 2022-23 from Rs 13.69 crore for the financial year 2021-22.

For the six months ending September 30, 2023 revenue from operations stood at Rs 103.22 crore and profit after tax stood at Rs 10.38 crore.

 

The table below shows subscription data for all the categories of investors: