Last Updated on January 17, 2024 by BFSLTeam BFSLTeam
Nova Agritech Limited is a Hyderabad-based agri-input manufacturer operating since 2007. It aims to become a one-stop solution for nutritious, ecological and sustainable products for farmers.
This company has now received approval from the regulator and has announced its IPO launch date to raise Rs. 143.81 crore through a fresh issue and an Offer for Sale. The fresh issue component of the IPO is worth Rs 112 crore and the OFS component comprises Rs 31.81 crore. The IPO will open to the public from 22nd to 24th January 2024 with a price band of Rs. 39-41/share.
This blog shall take you through the important information about the Nova Agritech IPO such as IPO details, objectives, competitive strengths, risk factors, financial summary and more.
Table of Content
Nova Agritech IPO Details
Here is the table showing some of the important details of the Nova Agritech Limited IPO:
| IPO Open Date | 22nd January, 2024, Monday |
| IPO Close Date | 24th January, 2024, Wednesday |
| Listing Date | 30th January, 2024, Tuesday |
| Face Value | Rs. 2 per share |
| Price Band | Rs. 39 to Rs. 41 per share |
| Lot Size | 365 shares |
| Total Issue Size | 35,075,693 shares worth Rs. 143.81 crore (approx) |
| Fresh Issue Size | 27,317,073 shares worth Rs. 112 crore (approx) |
| Offer for Sale Size | 7,758,620 shares worth Rs. 31.81 crore |
| Issue Type | Book built issue |
| Listed on | NSE and BSE |
About the Company
Nova Agritech Limited started its operation in 2007 when it was established by Sambasivarao Yeluri and Kalyani Chakravarthy. The company is a one-stop online and offline solutions provider for environmentally friendly, sustainable and nutritionally balanced products to farmers.
It is an agri-input manufacturing company that offers soil health management and crop protection/nutrition products to empower tech-based farming. It manufactures, markets and distributes a wide range of agri products. Some of the Nova Agritech Limited products involve bio-stimulants, integrated pest management, crop nutrition products, bio-pesticides and new technologies.
Till January 2023, Nova Agritech Private Limited Hyderabad has made a total of 629 product registrations. Out of these, 450 registrations fall under the crop protection category under Nova Agri Sciences Private Limited.
This company hosts a strong network of 10,900 dealers. Out of them, around 6,200 dealers are active. The dealer networks of Nova Agritech Limited are spread across 16 Indian states. It has a presence in Tamil Nadu, Chhattisgarh, Odisha, West Bengal, Andhra Pradesh, Telangana, Bihar, Jharkhand, and Jammu and Kashmir. There are also 2 dealers in Nepal.
Talking financially, the total income of the company rose to Rs. 18,561.09 million in FY 2022 from Rs. 12,666.98 million in FY 2020. At the same time, its profit after tax (PAT) grew from Rs. 297.97 lakh in FY2020 to Rs. 686.39 lakh in FY2022.
Additional Read: What Is a Red Herring Prospectus?
Nova Agritech IPO Objectives
Nova Agritech Limited recently filed its DRHP to raise funds via an Initial Public Offering. With a fresh issue of shares, the company plans to raise Rs. 143.81 crore from the public. The company is also offering an Offer for Sale for approximately 7.76 million shares by its shareholders. Nutalapati Venkatasubbarao is the only selling shareholder in this Nova Agritech IPO.
According to its DRHP, this IPO shall be a book-built issue. This means, the company shall accept bids at par or above the floor price after its launch. It has announced Rs. 2 as the face value for each share. After its launch, these shares will be listed on BSE and NSE.
Nova Agritech Limited is planning to utilise its net proceeds from its IPO as an investment for its subsidiary Nova Agri Sciences Private Limited. This funding shall help in setting up new formulation plants and fulfil working capital requirements in the future.
Additional Read: What are DRHP and RHP in IPO?
IPO Tentative Timeline
The tentative timelines for the Nova Agritech IPO are given as follows:
| Anchor Allocation Date | 19th January 2024, Friday |
| IPO Open Date | 22nd January, 2024, Monday |
| IPO Close Date | 24th January, 2024, Wednesday |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on 24th January, 2024 |
| Basis of Allotment | 25th January, 2024, Thursday |
| Initiation of Refunds | 29th January, 2024, Monday |
| Credit to Demat | 29th January, 2024, Monday |
| Listing Date | 30th January, 2024, Tuesday |
Nova Agritech IPO Lot Size
Listed below are the details of lot size along with minimum and maximum investment amounts for retail investors and HNIs.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 365 | Rs. 14,965 |
| Retail (Max) | 13 | 4745 | Rs. 1,94,545 |
| S-HNI (Min) | 14 | 5,110 | Rs. 2,09,510 |
| S-HNI (Max) | 66 | 24,090 | Rs. 9,87,690 |
| B-HNI (Min) | 67 | 24,455 | Rs. 10,02,655 |
Company Financials
Here is the financial summary of Nova Agritech Limited:
| Particulars | For the Financial Year Ending (in Rupees million*) | |
| 31 March 2022 | 31 March 2021 | |
| Total Assets | 16,029.77 | 14,743.86 |
| Total Income | 18,561.09 | 16,092.66 |
| Total Expense | 16,716.64 | 15,225.53 |
| Profit After Tax | 1,368.93 | 630.00 |
Also Read: How does an IPO work?
Strengths
Here are the strengths of Nova Agritech Private Limited Hyderabad which helps this company become a worthy IPO investment.
- This company has a diverse product mix that includes soil health management, biostimulants, crop nutrition, biopesticides, integrated pest management and crop protection products.
- This company has a well-equipped and experienced research and development team.
- It empowers and strengthens farmers’ outreach through Nova Kisan Seva Kendra.
- It focuses on nutritionally balanced and economically sustainable products.
- Nova Agritech Limited follows a technologically driven product development and marketing business model.
- This company also hosts a well-established distribution network across various locations in India.
Also Read: Risk of investing in IPO
Risks Associated
Besides the above strengths, you must also keep in mind the various risks that can hamper the business of the company.
- The brand image of Nova Agritech Limited is a crucial reason behind its growth and success. Any defamation of the company’s image can hamper its business and operation.
- The business is reliant on the image of its promoters and senior management members. Any harm to their image can hamper the company’s reputation, operation and finances.
- This company plans to use the net proceeds from its IPO as an investment towards its subsidiary Nova Agri Sciences Private Limited. The plans to set up formulating plants might be subject to delays, market risks and other uncertainties.
Summary
The information above will help you plan your IPO investment strategy by providing all the essential details of Nova Agritech Ltd. You should also go through its RHP to understand the company’s business model, financial situation, strengths, risks and opportunities. With these details, you can assess whether the investment suits your long-term plans or not.
To know how to invest in this IPO, you can explore our website. You can also open a Demat and trading account with us and start your investment journey with an IPO and grow your wealth.
Frequently Asked Questions
Nova Agritech Limited filed its DRHP to SEBI on February 28 and March 3, 2023, respectively.
The total offer size of the IPO is Rs. 143.81 crore comprising 35,075,693 equity shares.
Bajaj Capital Limited and Keynote Financial Services are the Book-Running Lead Managers for the Nova Agritech IPO.
Bigshare Private Limited is the registrar for Nova Agritech IPO.
