Nova Agritech Ltd. IPO
Nova Agritech Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹41
Issue Price
Listing Price
₹56
Listing Price
Listing Gains
+₹15.00 (+36.59%)
Listing Gains
IPO Details
Bidding Dates
23 Jan - 25 Jan '24
Bidding Dates
Min. Investment
₹14,235
Min. Investment
Lot Size
365.00
Lot Size
Price Range
₹39 - ₹41
Price Range
Issue Size
99 Cr
Issue Size
Subscription Rate
- Retail Individual Investor77.12x
- Non-Institutional Investor224.08x
- Qualified Institutional Buyers79.31x
- Employees
About Company
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.
Important Dates - Nova AgriTech IPO
| Application opens on | 23rd January 2024 |
| Last date of application | 25th January 2024 |
| Date of Allotment | 29th January 2024 |
| Refund begins from | 30th January 2024 |
| Credit of shares to Demat | 30th January 2024 |
| Listing date | 31st January 2024 |
Why should you invest in Nova Agritech Ltd. IPO?
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.
Nova AgriTech IPO Grey Market Premium
| Date | GMP |
|---|---|
| 20th January | Rs.20 |
| 19th January | Rs.20 |
Nova AgriTech IPO Noteworthy Highlights
Nova AgriTech IPO is a book-built issue of Rs 143.81 crores. The issue is a combination of fresh issue of 2.73 crore shares aggregating to Rs 112.00 crores and offer for sale of 0.78 crore shares aggregating to Rs 31.81 crores.
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
Nova Agritech Ltd. IPO - SWOT Analysis
Strengths
- One-Stop Shop for Soil Health Management: The company has evolved into a one-stop shop for all farming consumers by providing a wide range of items pertaining to crop protection and soil nutrition.
- Robust Distribution Network: The business has 11,722 dealers operating under it, 6769 of whom actively sold the company's goods in FY23.
Weaknesses
- Negative Cash Flows: The company has only declared Net Positive Cash Flow once in the last three years of commercial operations. This can be the outcome of using cash to settle debt in order to reduce the balance sheet's leverage.
- Licences and permissions are necessary: The business sector mandates that the Company apply for licences on a continual basis for each product they offer. The company currently has 720 goods and plans to apply for many more, which will result in increased expenses.
Opportunities
- Skilled Managers & Promoters: The company is managed by seasoned experts with extensive experience in the field. With over 23 years of experience in agrichemical, seed, and fertiliser companies, Kiran Kumar Atukuri is the promoter.
- Well-equipped research and development centre: The business has already bought a sizable plot of land to use as its testing and development centre. In addition, the business invests between 0.5% and 1% on R&D on average.
Threats
- Risk of Defaults: In the event of a poor farming year, the Company, as a product provider to farmers, is always vulnerable to a high default rate. The company made provisions for approximately 10% of its trade receivables, which totaled Rs. 129 Cr as of H1FY24. This indicates that the company anticipates not having this money come back into the company.
- Risk of policy changes: The government provides subsidies to the agriculture industry. Regulations are subject to change, which could have a big impact on companies by reducing or eliminating subsidies.
Financial Snapshot - Nova AgriTech IPO
Check out the financial performance of Nova AgriTech for recent years:
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2021 | Rs 147.44 crore | Rs 160.93 crore | Rs 6.30 crore |
| March 2022 | Rs 160.30 crore | Rs 185.61 crore | Rs 13.69 crore |
| March 2023 | Rs 180.78 crore | Rs 210.93 crore | Rs 20.49 crore |
How to apply for Nova Agritech Ltd. IPO?
You can apply for the Nova Agritech Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Nova Agritech Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
