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Nova AgriTech IPO is a book-built issue of Rs 143.81 crores. The issue is a combination of a fresh issue of shares aggregating to Rs 112.00 crores and an offer for sale of 77,58,620 shares aggregating to Rs 31.81 crores.
Nova AgriTech IPO opens for subscription on January 23, 2024, and closes on January 25, 2024. The price band is set at ₹39 to ₹41 per share. The minimum lot size for an application is 365 Shares.
Company Summary
The company is an agri-input manufacturer offering soil health management, crop nutrition, and crop protection products focused on a tech-based farmer-driven solution approach, wherein mainly they offer ecologically sustainable and nutritionally balanced products based on their R&D.
The company’s dealer network is currently spread across 16 states of India. Also, they have entered into marketing, distribution, and supply agreements with certain third parties in Bangladesh, Sri Lanka, and Vietnam and are currently awaiting the necessary permission to start business in these jurisdictions.
In addition, they run a farmer outreach program called Nova Kisan Seva Kendra program (NKSK) through which they educate farmers on various crop management practices. The key objective of NKSK is to provide farmers with need-based solutions, products, technologies, methodologies, know-how, and usage skills, thereby enhancing farm yield
They also provide farming inputs to farmers regarding the appropriate amount of dosage and application of their products through their IOT-based solutions such as the soil health scanning device called “NOVA BHUPARIKSHAK” and also, the drone called “NOVA AGRIBOT”.
Company strengths
As of January 31, 2023, They have received a total of 629 product registrations comprising 7 registrations in the soil health management category, 168 registrations in the crop nutrition category, 4 registrations in the biopesticide category, and 450 registrations in the crop protection category.
Through their R&D efforts, they constantly update and enhance their product portfolio to match the evolving landscape of the industry. They have a total dealer network comprising approximately 10,900 dealers out of which approximately 6200 dealers are active to whom they have distributed and sold their products during the current financial year.
Their relationship with the dealers and the availability of their own sales force, enables them to introduce new products promptly and also allows them to make them accessible to as many farmers as possible.
Company Financials
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 22 Mar 2022 | 31 Mar 2021 |
| Assets | 196.37 | 180.78 | 160.30 | 147.44 |
| Revenue | 103.24 | 210.93 | 185.61 | 160.93 |
| Profit After Tax | 10.38 | 20.49 | 13.69 | 6.30 |
| Net Worth | 74.23 | 63.88 | 43.19 | 29.43 |
| Reserves and Surplus | 60.97 | 50.59 | 30.10 | 16.41 |
| Total Borrowing | 68.50 | 70.96 | 64.27 | 51.10 |
Amount in crore |
Objectives of the IPO
- Investment in our subsidiary, Nova Agri Sciences Private Limited for setting up a new formulation plant.
- Funding Capital Expenditure in our Company, towards expansion of our existing formulation plant.
- Funding of working capital requirements of our Company.
- Investment in our subsidiary, Nova Agri Sciences Private Limited, for funding working capital requirements.
- General corporate purposes.
Promoters of the company
- Suraksha Agri Retails (India) Private Limited
- Malathi S
- Kiran Kumar Atukuri
IPO details
| IPO Date | January 23, 2024 to January 25, 2024 |
| Listing Date | Tuesday, January 30, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹39 to ₹41 per share |
| Lot Size | 365 Shares |
| Total Issue Size |
35,075,693 shares (aggregating up to ₹143.81 Cr) |
| Fresh Issue |
27,317,073 shares (aggregating up to ₹112.00 Cr) |
| Offer for Sale |
7,758,620 shares of ₹2 (aggregating up to ₹31.81 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 365 | ₹14,965 |
| Retail (Maximum) | 13 | 4745 | ₹194,545 |
| Small-HNI (Minimum) | 14 | 5,110 | ₹209,510 |
| Small-HNI (Maximum) | 66 | 24,090 | ₹987,690 |
| Large-HNI (Minimum) | 67 | 24,455 | ₹1,002,655 |
Allotment Schedule
| Basis of Allotment | Thursday, January 25, 2024 |
| Initiation of Refunds | Monday, January 29, 2024 |
| Credit of Shares to Demat | Monday, January 29, 2024 |
| Listing Date | Tuesday, January 30, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 24, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |