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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