Nova Agritech IPO GMP Details
Nova Agritech Limited is an agri-input manufacturer that focuses on providing soil health management solutions, crop nutrition and protection products, and other agricultural products. Their approach is tech-based and driven by the needs of farmers. They are committed to offering ecologically sustainable and nutritionally balanced products based on their research and development efforts. The company’s subsidiary, Nova Agri Sciences Private Limited, is responsible for manufacturing their crop protection products.
Nova Agritech has a wide network of around 6,200 dealers actively involved in distributing their products. This network operates in 16 states across India, including Telangana, Andhra Pradesh, Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, and others. Additionally, the company has entered into marketing, distribution, and supply agreements with third parties in Bangladesh, Vietnam, and Sri Lanka, and is currently awaiting permission to begin operations in these regions.
Objectives of the issue
The objective of the Nova Agritech Limited IPO is to utilize the proceeds from the sale of new shares for the following purposes:
- Investment in Nova Agri Sciences Pvt Ltd (a subsidiary of Nova Agritech Ltd) to establish a new formulation plant.
- Financing the expansion of their current formulation plant.
- Supporting the working capital requirements of Nova Agritech Ltd and its subsidiary.
- Meeting general corporate purposes.
Nova Agritech IPO Details
The company is planning to make an Initial Public Offering (IPO) of up to [*] equity shares with a face value of Rs. 2/- each. The Offer Price per equity share is Rs. [*], including a share premium of Rs. [*] per equity share, aggregating up to Rs. [*] crores. The IPO consists of a Fresh Offer of up to [*] equity shares worth Rs. 140.00 crores by the company, and an Offer for Sale of up to 77,58,620 equity shares worth Rs. [*] crores by Nutalapati Venkatasubbarao (the selling shareholder). The total offer size represents [*] % of the post-offer paid-up equity share capital of the company.
In addition to the IPO, the company may consider a Pre-IPO Placement of up to [*] equity shares for a cash consideration of Rs. 25.00 crores. The pre-IPO placement, if undertaken, will not exceed 20% of the fresh offer size and will be priced in consultation with the book running lead managers (BRLMs) and undertaken with the Registrar of Companies (ROC). If the pre-IPO placement occurs, the amount raised from it will be deducted from the fresh offer, subject to compliance with rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 as amended (SCRR). The company will decide the price band and minimum bid lot for the IPO.
Competitive Peers
Nova Agritech’s recognized competitors in the domain include Aries Agro Ltd., Amico Pesticides Ltd., Basant Agrotech Ltd., Best Agrolife Ltd., Bhagiradha Chemicals & Industries Ltd., Heranba Industries Ltd., India Pesticides Ltd., Madras Fertilizers Ltd., and Dharmaj Crop Guard Ltd.
Highlights of Nova Agritech IPO
- As of January 31, 2023, the company has received a total of 629 product registrations, with 450 registrations in the crop protection category.
- Nova Agritech has a presence in 16 Indian states through an active network of 6,200 dealers.
Nova Agritech IPO Company Financial Report
| Particulars | Period ending on September 30, 2022 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Revenue from Operations | 8,165.26 | 18,556.77 | 16,057.74 |
| Profit After Tax (PAT) | 686.39 | 1,368.93 | 630.00 |
| PAT Margin | – | – | – |
| EBITDA | 1,325.14 | 2,777.74 | 1,779.96 |
| EBITDA Margin | 16.23% | 14.97% | 11.08% |
| EPS | 1.09 | 2.18 | 1.00 |
| ROE | 14.72% | 37.70% | 24.08% |
Nova Agritech IPO Contact Information
Nova Agritech Limited
Sy.No.251/A/1, Singannaguda Village,
Mulugu Mandal, Siddipet, Medak, Telangana – 502279
Contact Person: Neha Soni, Company Secretary and Compliance Officer
Tel: +91 84 54253446
E-mail: ipo@novaagri.in
Website: www.novaagri.in
Nova Agritech IPO Registrar
Name: Bigshare Services Pvt. Ltd
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: https://www.bigshareonline.com/
Nova Agritech IPO Prospectus
To gain comprehensive insights into the company, you can review the documents submitted by the company during the filing process.
Nova Agritech IPO GMP Key Points
Strengths:
- Nova Agritech offers a diverse and comprehensive product portfolio, catering to various agricultural needs such as soil health management, crop nutrition, biostimulant, biopesticides, integrated pest management, and crop protection. With branded and diversified products, the company provides a convenient one-stop solution to farmers across India.
- The company has established a robust distribution network of dealers in different states, facilitating efficient marketing, sales, and distribution of its products. This well-established network enables Nova Agritech to reach and serve its customers effectively.
Risks:
- Nova Agritech, along with its subsidiaries, promoters, and directors, is currently involved in legal proceedings and potential litigation. These legal challenges may lead to liabilities, penalties, and adverse effects on the company’s business and reputation.
- The company has experienced negative cash flow in some fiscal years, which could pose risks to its financial stability, operations, and overall business performance if the negative cash flow persists.
Nova Agritech IPO FAQs
What is Nova Agritech IPO?
Nova Agritech Limited IPO consists of a combination of fresh shares worth ₹14,000 lakh and an offer for sale of up to 77,58,620 equity shares.
When will Nova Agritech IPO allotment be available?
The allotment details will be updated soon.
What will be the Nova Agritech IPO lot size?
The lot size for Nova Agritech Limited IPO will be updated soon.
When will Nova Agritech IPO open for subscription?
The subscription dates for Nova Agritech IPO will be updated soon.
I have finished the application process for Nova Agritech IPO, but the funds are not yet debited. What is the reason?
During the initial step, the bank only blocks the amount in your account. The funds will be debited when the shares are allotted, or the blocked amount will be unblocked after the UPI maNova Agritech IPO subscription datendate expiry date.
How to approve the UPI mandate request for Nova Agritech Limited IPO?
You can approve the UPI mandate request by logging into your UPI handle and completing the IPO application process.
Can I submit more than one application for the public issue of Nova Agritech Limited using one PAN?
No, you can submit only one application using one PAN card.
What is the minimum order quantity for Nova Agritech Limited IPO?
The minimum order quantity for Nova Agritech Limited IPO will be updated soon.
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