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.
Exciting opportunities ahead: Don’t forget to apply for Upcoming IPOs!
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:
*Amount in Crores
Source – RHP dates 12 January 2024 on the SEBI website
Exciting opportunities ahead: Don’t forget to apply for Upcoming IPOs!
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:
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.
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