Mumbai-based Nova Agritech Ltd has unveiled its Initial Public Offering (IPO) with a set price band of Rs 39-41 per share. The public issue is scheduled to open for subscription on January 22 and will conclude on January 24, with the anchor book opening on January 19. Keynote Financial Services Ltd, Bajaj Capital, and Bigshare Services are the appointed lead managers for the IPO.
Offer Composition and Financial Overview:
Nova Agritech’s IPO consists of a fresh issue of shares worth Rs 112 crore and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao, who currently holds a 11.97 percent stake in the company. At the upper end of the price band, the company aims to raise approximately Rs 143.81 crore, with a valuation of Rs 267.33 crore and 84.27 percent stake held by Nova Agritech.
Specializing in soil health, crop nutrition, and protection products, Nova Agritech reported robust financials for FY23. The company witnessed a 49.7 percent YoY surge in consolidated net profit to Rs 20.5 crore, with revenue growing by 13.4 percent to Rs 210.6 crore. The strong operating performance led to a 39.3 percent increase in EBITDA to Rs 38.7 crore, resulting in a 342 bps margin expansion to 18.4 percent for the quarter.
For the six months ending September FY24, Nova Agritech reported a consolidated net profit of Rs 10.4 crore on a revenue of Rs 103.22 crore. The company holds 720 product registrations across various categories, with Telangana contributing significantly to its business, accounting for 76 percent in the first half of FY24.
IPO Details and Market Allocation:
The IPO allocation is divided into 50 percent for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors. The basis of allotment is expected to be finalized by January 25, and trading is set to commence on January 30.
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