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HomeNewsIndian NewsInvest Wisely: Nova Agritech IPO Set to Open, Understanding the Rs 143.8...

Invest Wisely: Nova Agritech IPO Set to Open, Understanding the Rs 143.8 Crore Issue

Invest Wisely

Nova Agritech’s Rs 143.81 crore initial public offering (IPO) will be available for subscription on January 23. The offer consists of a new issue of 2.73 crore shares and an offer-for-sale of 77.58 lakh.

IPO Subscription Dates:

Opens on January 23, 2024
Closes on January 25, 2024

Price Band:

Fixed at Rs 39-41 per share.
Offer Details:

Nova Agritech aims to raise Rs 143.81 crore.
Fresh issue: 2.73 crore shares (Rs 112 crore).
Offer-for-sale: 77.58 lakh shares (Rs 31.81 crore).
Promoters: Suraksha Agri Retails (India), Malathi S, Kiran Kumar Atukuri.
Objectives of the Issue:

Fresh issue proceeds: Rs 14.20 crore for a new formulation plant.
Rs 10.49 crore for capital expenditure and expansion.
Rs 26.65 crore for Nova Agritech’s working capital.
Rs 43.36 crore for Nova Agri Sciences’ working capital.
Lot Size:

Minimum bid: 365 equity shares.
Retail investors minimum investment: Rs 14,235 (365 shares x Rs 39).
Company Profile:

Agri-input manufacturer with a tech-driven farmer-centric approach.
Dealer network: 11,722 dealers across India and abroad.
Entered agreements in Bangladesh, Sri Lanka, Vietnam pending approvals.
Financials (FY23):

Revenue: Rs 211 crore (13% YoY increase).
Net profit: Rs 20.49 crore (43% YoY increase).
RoE: 38.27%, RoCE: 27.25%.
Net debt: Rs 10.8 crore, Debt to Equity ratio: 1.11x.
IPO Management:

Book-Running Lead Managers: Keynote Financial Services, Bajaj Capital.
Registrar: Bigshare Services.
Promoters: Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, Ajay DD Singhania.

Risks:

Total outstanding debt as of Nov 30, 2023: Rs 44.17 crore.
Business operations dependent on licenses and permits.
Brand strength crucial; challenges in brand maintenance and development.

Listing Date:

Basis of allotment finalised by January 29.
Shares credited to demat accounts by January 30.
Listed on NSE and BSE on January 31.

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