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Nova Agritech IPO Check Price Band Lot Size and More Details

08 Feb 2024

Introduction:

After a mind-boggling 2023, the euphoria in the Indian primary markets continues in 2024. Several promising companies will launch their Initial Public Offerings (IPOs) in the first month. After bumper listing gains from Jyoti CNC Automation, the investors’ focus has shifted to Nova Agritech IPO, which will open for public subscription on 22 January 2024.

The Hyderabad-based company filed its draft papers in March 2023 and received approval from the market regulator to launch its IPO in May 2023. The IPO will comprise a fresh issue worth Rs. 112 crores and an offer for sale of 77.5 lakh equity shares. 

Continue reading to learn more about the Nova Agritech IPO, including lot size, price band, face value, listing date, and more.

About Nova Agritech Limited

Incorporated in 2007 in Hyderabad, Nova Agritech Limited primarily assists farmers in growing better crops. The company provides services such as soil health management, crop protection, integrated pest management, and technology-based farming solutions. It also offers a diverse range of Agri products, including crop nutrition, bio-stimulants, bio-pesticides, etc.

As of 30 November 2023, the company had 720 product registrations, with 126 registrations in the crop nutrition category, 526 registrations in the crop protection category, seven registrations in the soil management category, seven registrations in the technical indigenous manufacturing category, and four registrations in the bio-pesticide category. The company actively collaborates with farmers through an initiative that involves 13 Kisan Mitras, 253 Kisan Sevaks, and 32 NKSK Coordinators.

Key Strengths of the Company

Examining the core strengths of the issuing company can provide valuable insights into its future growth potential. The following are the primary strengths of Nova Agritech Ltd., as emphasised in the company's DRHP:

  • Caters to complete agricultural requirements of farmers through a diverse range of products
  • Boasts a well-established and extensive distribution network across the country
  • Enhanced farmer engagement through Nova Kisan Seva Kendras
  • Robust product development and marketing guided by technology-driven approaches
  • State-of-the-art Research & Development facility with advanced equipment and resources

Key Risks and Weaknesses Highlighted

The primary risks and weaknesses associated with Nova Agritech Ltd. are outlined below, providing insights into factors that may impede its sustained growth:

  • The business is vulnerable to government regulations and climatic conditions
  • Changes in government policies regarding the agriculture sector can potentially affect the business
  • The company’s promoters and Directors are directly involved in certain ongoing legal proceedings
  • The absence of long-term agreements with raw material suppliers represents a potential risk
  • Operational risks associated with the manufacturing, usage, and storage of hazardous substances

Core Financials of the Company

The financials of Nova Agritech Limited paint a robust picture. The company’s net worth has improved from Rs. 294 crores in FY21 to Rs. 639 crores in FY23. The revenue from operations also increased from Rs. 1,606 crores to Rs. 2,106 crores in the same period. The profit after tax more than tripled from Rs. 63 crores to Rs. 205 crores.

The table below depicts the detailed financials of the company for the last three completed financial years:

Particulars For the Period Ended Sept 2023 As of and for FY Ended March 31
2023 2022 2021
Share Capital 125 125 125 125
Net Worth 742 639 432 294
Total Borrowings 685 710 643 511
Revenue From Operations 1032 2106 1856 1606
EBITDA Adjusted 194 387 278 178
Profit After Tax 104 205 137 63
Earnings Per Share (Diluted) 2 3 2 1
Return on Capital Employed 13% 27% 24% 20%

*Amount in Crores

Source – RHP dates 12 January 2024 on the SEBI website

Details of the IPO

Nova Agritech IPO will comprise a fresh issue worth Rs. 112 crores and an offer for sale of 7,758,620 equity shares with a face value of Rs. 2 each. The IPO will open for public subscription on 22 January 2024 and closes on 24 January 2024. The company has yet to announce other details such as lot size and price range. 

The table below illustrates crucial details of the Nova Agritech IPO:

IPO Date 22 January to 24 January 2024
Basis of Allotment 25-Jan
Listing Date 30-Jan
Face Value Rs. 2 per share
Price Band Yet to be announced
Lot Size Yet to be announced
Total Issue Size Yet to be announced
Fresh Issue Rs. 112 crores
Offer For Sale 7,758,620 equity shares
Issue Type Book Built Issue
Listing At NSE, BSE

 

To conclude

Nova AgriTech Limited is a significant player in the agricultural sector, emphasising innovative and environmentally friendly solutions for farmers. With a diverse range of products, a strong distribution network, and a dedication to technology-driven advancements, the company seeks to tackle various facets of soil health, crop nutrition, and pest management. IPO details, including the lot size, price band, and issue size, are yet to be finalised. Investors must stay informed of the latest developments to make well-informed decisions.

 

Related Articles:  How to Analyse an IPO | What is IPO Grading? | What is Cut Off Price In IPO Application 

 

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