Mumbai-based Nova Agritech Ltd has unveiled its Initial Public Offering (IPO), setting a price band of INR 39-41 per share. The IPO 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.
Nova Agritech’s IPO comprises a fresh issue of shares amounting to INR 112 crore and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao, currently holding an 11.97 percent stake in the company. At the upper end of the price band, the company aims to raise approximately INR 143.81 crore, establishing a valuation of INR 267.33 crore, with Nova Agritech retaining an 84.27 percent stake.
Focusing on soil health, crop nutrition, and protection products, Nova Agritech announced strong financial results for FY23. The company experienced a substantial 49.7 percent year-on-year (YoY) increase in consolidated net profit, reaching INR 20.5 crore, while revenue showed a growth of 13.4 percent, totaling INR 210.6 crore. The robust operational performance contributed to a 39.3 percent rise in EBITDA, reaching INR 38.7 crore. This led to a notable margin expansion of 342 basis points, bringing it to 18.4 percent for the quarter.
For the six months ending September FY24, Nova Agritech posted a consolidated net profit of INR 10.4 crore, supported by a revenue of INR 103.22 crore. The company holds 720 product registrations across various categories, with a notable 76 percent contribution from Telangana to its business in the first half of FY24.
The IPO allocation is structured with 50 percent designated for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors. The finalization of the basis of allotment is expected by January 25, and trading is slated to kick off on January 30.
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