- Price Band of ₹39/- – ₹41/- per equity share bearing face value of ₹2/- each (“Equity Shares”)
- Bid/Offer Opening Date – Monday, January 22, 2024 and Bid/Offer Closing Date – Wednesday, January 24, 2024.
- Minimum Bid Lot is 365 Equity Shares and in multiples of 365 Equity Shares thereafter.
- The Floor Price is 19.50 times the face value of the Equity Share and the Cap Price is 20.50 times the face value of the Equity Share.
Nova Agritech Ltd (“The Company”), an Agri-input manufacturer which offers soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, has fixed the price band of ₹39/- to ₹41/- per Equity Share of face value ₹2/- each for its maiden initial public offer.
The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, January 22, 2024, for subscription and close on Wednesday, January 24, 2024. Investors can bid for a minimum of 365 Equity Shares and in multiples of 365 Equity Shares thereafter.
The issue consists of a fresh issue of equity shares aggregating to ₹ 11,200 Lakhs and an offer-for-sale (OFS) of up to 77,58,620 equity shares by the selling shareholder Nutalapati Venkatasubbarao.
Out of the net proceeds from the fresh issue, an amount of ₹ 1,420.11 Lakhs will be utilised for investment in its subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant, ₹ 1,048.95 Lakhs for funding Capital Expenditure by the Company, towards expansion of its existing formulation plant, ₹ 2,665.47 Lakhs for funding its working capital requirement of the Company, ₹ 4,335.85 Lakhs for investment in its subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements and the balance amount from the net proceeds will be utilised for general corporate purposes.
Incorporated in 2007 with an objective to become a one-stop solution provider for the farming community, the Company manufactures, distributes and markets a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) bio stimulant products; (d) bio pesticide products (e) Integrated Pest Management products; (f) new technologies; and (g) crop protection products.
As on November 30, 2023, the Company has received a total of 720 product registrations comprising of 7 registrations in the soil health management category, 176 registrations in the crop nutrition category, 4 registrations in bio pesticide category, 7 registrations under Technical Indigenous Manufacture and 526 registrations in the crop protection category. In addition to this, the Company has applied for 22 new registrations whereas its subsidiary Nova Agri Sciences Private Limited has applied for 14 new registrations for new products across various categories.
It has a total dealer network comprising of approximately 11,722 dealers out of which approximately 6,769 dealers are active to whom it has distributed and sold its products during the current financial year. Its dealer network is currently spread across 16 states of India. It has also 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.
The Company also runs 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, knowhow and usage skills, thereby enhancing farm yield. The Company also provides farming inputs to farmers regarding the appropriate amount of dosage and application of their products through IOT based solutions such as the soil health scanning device called “NOVA BHUPARIKSHAK” and also the drones called as “NOVA AGRIBOT”.
Nova Agritech’s revenue from operations increased by 13.47% to ₹ 21,055.54 Lakhs for the financial year 2022-23 from ₹ 18,556.77 Lakhs for the financial year 2021-22, primarily on account of an increase in business volumes on the back of technical import registrations, foraying into new states like Tamil Nadu and consolidation of business in existing states namely, Telangana, Andhra Pradesh and Karnataka. Profit after tax increased by 49.69% to Rs 2,048.95 Lakhs for the financial year 2022-23 from Rs 1,368.93 Lakhs for the financial year 2021-22.
For the six months ending September 30, 2023 revenue from operations stood at Rs 10,321.60 Lakhs and profit after tax stood at Rs 1038.22 Lakhs.
Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.
