Nova Agritech IPO subscribed 9.75 times on Day 1 led by Retail and NII

 The Initial Public Offering of Nova Agritech Limited was subscribed 9.74 times on the first day of bidding led by Retail and NII.

 

The issue received bids of 24,77,91,200 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 14.68 times, Retail Portion was subscribed with 12.77 times, whereas Qualified Institutional Buyer Portion subscribed 0.62 times. The issue kicked off for subscription on Tuesday, January 23, 2023 and will close on Thursday, January 25, 2023.

 

Last week, Nova Agritech Ltd raised Rs 43.14 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were AG Dynamic Funds Limited, Neomile Growth Fund – Series I, Saint Capital Fund, and Quantum-State Investment Fund.

 

Leading brokerages like BP Equities, StoxBox, Swastika, and Ventura Securities, have given a “SUBSCRIBE” rating to the issue, highlighting the company's impressive financial performance over the last three years. Despite the inherent susceptibility to climatic conditions and competition within the agri-input sector, the IPO's attractiveness is underlined by a compelling valuation, featuring a P/E of 13.05x and a noteworthy RoNW of 38.27%. Nova Agritech has a comparatively low PE ratio to industry peers, further strengthening the case for a positive investment outlook.

 

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”) 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.

 

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