Ahead of the debut, the company’s shares fetched a premium of Rs 23 in the unlisted market.
Nova Agritech IPO, which included a fresh equity issue worth Rs 112 crore and an offer for sale (OFS) of 77.5 lakh shares, received massive subscription of over 100 times, driven by heavy bidding from non-institutional and institutional investors.
Most analysts gave a subscribe recommendation to the IPO over the company’s solid financial track record in a highly-competitive sector. The company has delivered an impressive return on equity (ROE) of 32.1% and boasts of robust PAT margins at 9.7% in FY23.
Ahead of the IPO opening, the company has raised Rs 43 from anchor investors including Quantum- State Investment Fund, Neomile Growth Fund among others.
Proceeds from the fresh issuance will be utilized for investment in its subsidiary, funding capex, working capital requirements and the rest for investment in the subsidiary Nova Agri Sciences.Nova AgriTech is an agri-input manufacturer offering soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, wherein it mainly offers ecologically sustainable and nutritionally balanced products based on R&D.As of November 2023, it has received a total of 720 product registrations comprising 7 registrations in the soil health management category, 176 in the crop nutrition category, 4 in bio pesticide category, 7 in technical indigenous manufacturing and 526 in the crop protection category.
The subsidiary, Nova Agri Sciences (NASPL), handles the manufacturing of crop protection products, contributing significantly to the company’s revenue.
Keynote Financial Services and Bajaj Capital acted as the book-running lead managers and Bigshare Services was the registrar to the offer.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
