Nova Agritech IPO was fully subscribed on the first day of bidding, with a total subscription of 5.4 times so far. Retail category subscription stood at 8.1 times, followed by NII share at 6.1 times. The IPO comprises a fresh equity issue of Rs 112 crore and an offer for sale of 77.58 lakh shares. Nova Agritech GMP is selling at Rs 20 in the unlisted market with an almost 70% premium. The company has fixed the price band for the IPO at Rs 39-41.

Driven by robust interest from both retail and HNI investors, the Nova Agritech IPO achieved full subscription on the inaugural day of the bidding process on Tuesday. The overall subscription stood at a noteworthy 5.4 times on the first day, with the retail category subscription surging to 8.1 times. Additionally, the NII portion witnessed a strong response, accumulating bids at 6.1 times the available shares.

The IPO, which closes on January 25, comprises a fresh equity issue of Rs 112 crore and an offer for sale (OFS) of 77.58 lakh shares.

Nova Agritech IPO GMP

Nova Agritech IPO is experiencing a robust response in the unlisted market, with a GMP (Grey Market Premium) currently quoted at Rs 20. Reflecting strong demand, investors are willing to pay a premium of approximately 70% compared to the upper price band.

The IPO price band is set between Rs 39-41, allowing investors to bid for 365 shares in one lot. Notably, around 50% of the shares will be allocated to qualified institutional buyers (QIBs), while 15% will be available for non-institutional buyers.

Nova Agritech IPO price band

The company has established a price band of Rs 39-41 for the IPO, offering investors the opportunity to bid for 365 shares in one lot.

Approximately 50% of the shares will be reserved for allocation to qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.

Nova Agritech IPO review

The IPO received a unanimous “subscribe” recommendation from most analysts, attributing it to the company’s robust financial track record in a fiercely competitive sector. The company has demonstrated an impressive return on equity (ROE) of 32.1% and maintained strong PAT margins of 9.7% in FY23.

Other details

Nova AgriTech, as of November 2023, is an agri-input manufacturer with a strong emphasis on tech-driven, farmer-centric solutions. The company specializes in soil health management, crop nutrition, and crop protection products, offering ecologically sustainable and nutritionally balanced solutions developed through rigorous research and development (R&D).

Notably, the company has obtained a total of 720 product registrations, encompassing 7 registrations in the soil health management category, 176 in the crop nutrition category, 4 in the biopesticide category, and 7 in technology-related categories.

Nova Agritech IPO Objective

From the proceeds of the fresh issuance, Rs 14 crore will be allocated for strategic investment in its subsidiary, Rs 10 crore for facilitating capital expenditures, and Rs 26 crore for addressing working capital requirements, with the remaining amount earmarked for investment in the subsidiary Nova Agri Sciences.

Disclaimer: The recommendations, suggestions, views, and opinions provided by the experts are solely their own and do not reflect the perspectives of Indianakhbar.