Nova AgriTech IPO: An Overview and Corporate Insight
Nova AgriTech Limited was established in Hyderabad in May 2007 and produces tools to aid farmers in improving crop growth. Three primary areas are prioritised: crop protection, plant nutrition, and soil health. Technology is used in the manufacturing process to create nutrient-dense, ecologically friendly products. The business works with farmers to understand their needs and create solutions that are specifically tailored to their specifications.
The company produces, supplies, and sells a wide range of products, such as (a) products for soil health, (b) products for crop nutrition, (c) biostimulants, (d) biopesticides, (e) products for integrated pest management (IPM), (f) novel technologies, and (g) products for crop protection. Crop protection products are currently produced by the subsidiary Nova Agri Sciences Private Limited.
Grey Market Premium Analysis and IPO Timelines – Nova AgriTech IPO
| Date | GMP |
| January 20 | ₹20 |
| January 19 | ₹20 |
Pricing Details and Lot Size – Nova AgriTech IPO
The price band for Nova AgriTech IPO is ₹39 to ₹41 per share.
Book-Running Lead Managers and Registrar – Nova AgriTech IPO
Keynote Financial Services Limited and Bajaj Capital Limited are the book-running lead managers while BigShares Services Private Limited is the registrar.
Offer for Sale and IPO Size Breakdown – Nova AgriTech IPO
The offer for sale (OFS) portion of the Nova AgriTech Services IPO comprises the issue of 2,80,28,168 shares (280.28 lakh shares approximately), which at the upper price band of ₹418 per share translates into OFS issue size of ₹1,171.58 crore.Since there is no fresh issue, the OFS portion will also double up as the overall issue size.
IPO Timelines at a Glance – Nova AgriTech IPO
|
Event |
Date |
| IPO Opening Date | January 23, 2024 |
| IPO Closing Date | January 25, 2024 |
| IPO Allotment Date | January 25, 2024 |
| Initiation of Refunds | January 29, 2024 |
| Credit of Shares to Demat | January 29, 2024 |
| IPO Listing Date | January 30, 2024 |
Utilisation of Fresh Issuance and Technological Advancements – Nova AgriTech IPO
The following is the proposed use of the net proceeds of the fresh offer:
- Funding capital expenditures in the company for the development of the current formulation plant
- Investment in the subsidiary
- Financing the company’s working capital needs
- Financing working capital needs through an investment in Nova Agri Sciences Private Limited
Conclusion
The business produces agri-input technology-based goods and has seen an increase in its financial performance over the previous three fiscal years. FY24’s H1 shows modest growth, which suggests static performance. Looking at the issue’s annualised earnings for FY24, it looks fully priced. Knowledgeable investors can set aside money for medium- to long-term gains.
Frequently Asked Questions (FAQ) – Nova AgriTech IPO
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What does Nova AgriTech specialise in?
The company produces, supplies, and sells a wide range of products, such as (a) products for soil health, (b) products for crop nutrition, (c) biostimulants, (d) biopesticides, (e) products for integrated pest management (IPM), (f) novel technologies, and (g) products for crop protection.
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What is the primary purpose of Nova AgriTech’s IPO?
The company intends to allocate Rs 14 crore of the proceeds from the new issuance towards subsidiary investment, Rs 10 crore towards capital expenditure, Rs 26 crore towards working capital needs, and the remaining amount towards investment in the subsidiary Nova Agri Sciences.
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Who are the lead managers for Nova AgriTech’s IPO?
Keynote Financial Services Limited and Bajaj Capital Limited are the book-running lead managers for the offer.
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How is the IPO structured in terms of new issuance and offer for sale (OFS)?
The book-built issue of Rs 143.81 crores is the Nova AgriTech IPO. The issue consists of an offer to sell 0.78 crore shares, valued at Rs 31.81 crores, and a fresh issue of 2.73 crore shares, valued at Rs 112.00 crores.
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What is the lot size and minimum investment for retail investors in the Nova AgriTech IPO?
Nova AgriTech IPO lot size is 365 Shares, and the minimum amount required is ₹14,965
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What is the price band for the Nova AgriTech IPO?
The price band for Nova AgriTech IPO is ₹39 to ₹41 per share.
- How has the Grey Market Premium (GMP) trend for Nova AgriTech IPO?
The GMP was valued at Rs 20 on January 20, 2024.
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When does the IPO open and close for subscription?
Nova AgriTech IPO will open for subscription on January 23, 2024 and close on January 25, 2024.
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When is the allotment date for the Nova AgriTechLimited IPO?
The allotment date is set for January 29 2024.
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When is Nova AgriTech expected to be listed on the stock exchanges?
The anticipated listing date for Nova AgriTech IPO is January 31 2024 on the BSE and NSE mainboards.
