11-Jan-2024
2 mins read
The upcoming Initial Public Offering (IPO) of Nova AgriTech is structured as a book-built issue featuring a fresh issuance of shares valued at Rs 140.00 crore, accompanied by an offer for the sale of 0.78 crore shares. The Nova AgriTech IPO is scheduled from January 23, 2024, to January 25, 2024. The price band for the IPO is set at ₹39 to ₹41 per share. The IPO’s book-running lead managers include Keynote Financial Services Ltd and Bajaj Capital Limited, with Bigshare Services Pvt Ltd appointed as the registrar for the issue.
Nova AgriTech Limited Product Portfolio
Established in May 2007 and based in Hyderabad, Nova AgriTech Limited is a company dedicated to enhancing agricultural practices. Their primary focus lies in three critical areas: enhancing soil health, improving plant nutrition, and providing effective crop protection. Nova AgriTech prides itself on leveraging advanced technology to produce products that are both environmentally sustainable and nutritionally beneficial. The company works closely with farmers, engaging with them to understand their unique needs and subsequently creating tailored solutions.
Nova AgriTech boasts a diverse product portfolio that includes soil health enhancers, crop nutritionals, biostimulants, biopesticides, integrated pest management products, innovative new technologies, and crop protection solutions. Its subsidiary, Nova Agri Sciences Private Limited, specifically handles the production of crop protection products.
As of January 31, 2023, Nova AgriTech has achieved a significant milestone with 629 product registrations across various categories. These registrations span soil health management (7 registrations), plant nutrition (168 registrations), biopesticides (4 registrations), and crop protection (450 registrations). This diverse range underscores the company’s commitment to comprehensive agricultural solutions.
The company also places a strong emphasis on direct engagement with the farming community. By January 2023, it had established a network of 13 Kisan Mitras and 253 Kisan Sevaks. Additionally, Nova AgriTech employs a team of 32 NKSK Coordinators, all of whom hold degrees in Agricultural Sciences and are full-time employees. The NKSK program, which includes NKSK Coordinators, Kisan Mitras, and Kisan Sevaks, is designed to facilitate personal interactions with farmers at the grassroots level.
To support its vast range of products, Nova AgriTech has a dedicated sales team of 215 members. This team is responsible for managing the brand’s sales, overseeing distribution channels, and promoting the products effectively. This robust team plays a crucial role in maintaining the company’s strong presence in the agricultural sector.
The Objectives of Nova AgriTech Limited IPO 2024
The net income from the Fresh Offer, which is the total revenue generated from it minus the expenses related to the offer allocated to the company, is planned to be allocated in several key areas:
Firstly, a portion of these funds is intended for investment in Nova Agri Sciences Private Limited, a subsidiary of the company, specifically for the construction of a new formulation plant. Additionally, part of the net proceeds will be used for capital expenditure within the company itself, aimed at expanding the capacity of the existing formulation plant. Another significant allocation of the funds will be towards bolstering the company’s working capital, ensuring smooth operations and growth. Moreover, investment is also planned in Nova Agri Sciences Private Limited to support its working capital needs. Lastly, a portion of the net proceeds is earmarked for general corporate purposes, facilitating various operational and strategic initiatives of the company.
Financial Performance of Nova AgriTech (In Rs and Crore)
Between the fiscal years ending March 31, 2021, and March 31, 2022, Nova AgriTech Limited reported a revenue growth of 15.34% and an impressive increase of 117.29% in its profit after tax (PAT).
| Period Ended | 30-Sep-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 |
| Assets | 171.25 | 160.3 | 147.44 | 111.25 |
| Revenue | 81.98 | 185.61 | 160.93 | 126.67 |
| Profit After Tax | 6.86 | 13.69 | 6.3 | 2.98 |
| Net Worth | 50.09 | 43.19 | 29.43 | 22.89 |
| Reserves and Surplus | 36.96 | 30.1 | 16.41 | 10.11 |
| Total Borrowing | 66.34 | 64.27 | 51.1 | 46.07 |
Important Details for Nova AgriTech Limited IPO 2024
| IPO Date | January 23, 2024 to January 25, 2024 |
| Listing Date | Tuesday, January 30, 2024 |
| Face Value | Rs 2 per share |
| Price | ₹39 to ₹41 per share |
| Lot Size | 365 Shares |
| Total Issue Size | 35,075,693 shares (aggregating up to ₹143.81 Cr) |
| Fresh Issue | Aggregating up to Rs 140 Cr |
| Offer for Sale | 7,758,620 shares of Rs 2 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 65,202,740 |
IPO Reservation of Nova AgriTech
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Promoters of Nova AgriTech IPO 2024
The promoters of the company are Suraksha Agri Retails (India) Private Limited, Malathi S, and Kiran Kumar Atukuri.
Promoter Holding of Nova AgriTech IPO 2024
| Shareholding Pre Issue | 84.27% |
| Shareholding Post Issue |
Lead Manager(s) of Nova AgriTech Limited IPO 2024
The lead manager(s) for Nova AgriTech Limited IPO 2024 are Keynote Financial Services Ltd and Bajaj Capital Limited.
How to Apply for Nova AgriTech Limited IPO 2024
Wait for the public issue to open for subscription, then click on this link to apply for the Nova AgriTech Limited IPO 2024 with Bigul https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Nova AgriTech Limited IPO 2024
The registrar for Nova AgriTech Limited IPO 2024 is Bigshare Services Pvt Ltd. To check your allotment status, please click on this link: https://ipo.bigshareonline.com/ipo_status.html.
FAQs
- What is Nova AgriTech Limited IPO 2024?
The Nova AgriTech Limited IPO 2024 is a book-built issue comprising a fresh issue of shares worth Rs 140 crore and an offer for sale of 0.78 crore shares. The Nova AgriTech IPO is scheduled from January 23, 2024, to January 25, 2024. The price band for the IPO is set at ₹39 to ₹41 per share.
- Who are the lead managers for the Nova AgriTech Limited IPO 2024?
Keynote Financial Services Ltd and Bajaj Capital Limited are appointed as the lead managers for the IPO.
- What is the role of Bigshare Services Pvt Ltd in this IPO?
Bigshare Services Pvt Ltd is the registrar for the Nova AgriTech Limited IPO 2024, handling the IPO’s administrative aspects.
- How can I apply for the Nova AgriTech Limited IPO 2024?
You can apply for the IPO once it opens for public subscription. Visit Bigul’s website here for the application process.
- How will the net proceeds from the IPO be utilized?
The net proceeds will be used for various purposes, including investment in Nova Agri Sciences Private Limited for a new formulation plant, funding capital expenditure and working capital requirements of the company, and for general corporate purposes.
- How can I check the allotment status of the IPO?
You can check the allotment status of the Nova AgriTech Limited IPO 2024 by visiting Bigshare Services Pvt Ltd’s website.
- What is the financial performance of Nova AgriTech Limited?
For the year ending March 31, 2022, Nova AgriTech Limited reported a 15.34% increase in revenue and a 117.29% rise in profit after tax compared to the previous fiscal year.