Nova AgriTech IPO opens today- Read All The Information About The IPO
Proposals for the Initial Public Offering (IPO) of Nova AgriTech Limited, which is scheduled to begin on January 23, 2024, will be accepted until January 25, 2024. Situated somewhere in the financial range, the agri-tech company has set the pricing range for its initial public offering (IPO), which is ₹39 to ₹41 for each equity share. The business plans to raise ₹143.81 crore in its IPO. To finance this financial move, it is planning a strategic book build issue that will be listed on the BSE and NSE. In the meanwhile, shares of Nova AgriTech Ltd. gain traction in the gray market, which is the domain of unofficial market transactions.
Nova AgriTech IPO is a carefully planned book build issue that aims to raise Rs 143.81 crore. This financial maneuver involves a combination of a fresh issue of Rs 2.73 crore worth Rs 112.00 crore, and a fresh offer for sale of Rs 0.78 crore worth Rs 31.81 crore.
The IPO of Nova AgriTech will commence its subscription phase on Jan 23, 2024, and will remain open for investor participation till Jan 25, 2024. The subscription phase is expected to end on Jan 29, 2024, after which the allotment process will begin. The listing spectacle on the BSE and the NSE is scheduled for Wednesday.
Details Of Nova AgriTech IPO
Nova AgriTech IPO GMP Today-
The shares of Nova AgriTech Ltd are currently trading at a premium of EUR 20 on the grey market, according to market observers.
Nova AgriTech IPO Price-
The agri-tech entity has established a pricing spectrum, fixing the equity share range at ₹39 to ₹41.
Nova AgriTech IPO Date-
Scheduled for prospective subscribers, the book build issue will commence on January 23, 2024, and extend its availability until January 25, 2024.
Nova AgriTech IPO Size-
Nova AgriTech allocates EUR 112 million for the issue of new shares, with an intention to raise EUR 143.81 million through its initial public offering. In the meantime, the remaining amount of 31.81 crores is reserved for the offer for sale of the OFS component.
Nova AgriTech Limited Details
Nova AgriTech Limited, founded in May 2007 in Hyderabad, is in the forefront of manufacturing solutions to improve agricultural agriculture. The company targets three key areas: soil health, plant nutrition, and crop protection. The goods, which use cutting-edge technology, are both ecologically friendly and nutritionally helpful. Nova AgriTech constantly collaborates with farmers, working closely to understand their individual requirements and developing bespoke solutions.
The company produces, distributes, and markets a wide range of products, such as (a) products for soil health, (b) products for crop nutrition, (c) biostimulants, (d) biopesticides, (e) products for integrated pest management (IPM), (f) new technologies, and (g) products for crop protection. Interestingly, the subsidiary, Nova Agri Sciences Private Limited, manages crop protection product manufacture, which gives Nova AgriTech’s extensive product line a specialized touch.
The net proceeds from the fresh offer shall be earmarked for strategic use as follows, calculated on the basis of the gross sum of the new offer minus the allocated offers expenses to the company-
Investment in Subsidiary: Funding for the construction of a new formulation plant at Nova Agri Sciences Private Limited.
Capital Expenditure Funding: A contribution to the Company’s capital expenditures, with a focus on the growth of the current formulation facility.
Working Capital Requirements: Sufficient funds allocated to cover the company’s working capital needs.
Working Capital Investment: To meet the working capital requirements of the subsidiary, Nova Agri Sciences Private Limited, additional investment is made.
General Corporate Purposes: Providing a flexible approach to the entire financial plan through general deployment for corporate needs.
Nova Agritech has a strong presence across multiple geographies and has been able to sustain its growth over the years due to an effective marketing strategy. According to the investment firm, Nova’s financial performance has been commendable, with steady growth over the last three years and reinforced expansion plans.
While acknowledging Nova’s strengths, the investment firm also highlighted some risks associated with its business model, such as its vulnerability to climate and its heavy reliance on a small geographic region for the majority of its income.
Overall, the investment firm recommends a ‘subscribe’ approach, highlighting potential listing advantages for potential investors.
