Nova Agritech IPO subscribed 63 times so far on day 3

25 Jan 2024 , 01:42 PM

Nova Agritech’s initial public offering (IPO) of Rs 161.08 crore witnessed robust demand, with the subscription reaching 63.38 times on the final day of bidding, January 25. Click here to subscribe the IPO.

Retail investors showed significant interest by subscribing 58.82 times their allocated shares, while high net-worth individuals (HNI) oversubscribed by an impressive 149.41 times. Qualified institutional buyers (QIB) subscribed 5.90 times the shares allocated to them.

The IPO comprises a fresh issue of 2.73 crore shares, valued at Rs 112 crore, and an offer for sale of 77.58 lakh shares, amounting to Rs 31.81 crore. The price band for the offering was set at Rs 39-41 per share.

Nova Agritech secured Rs 43.14 crore from institutional investors on January 19, demonstrating strong financial backing.

Proceeds from the fresh issue will be allocated for strategic purposes, including setting up a formulation plant for subsidiary Nova Agri Sciences. Additionally, Rs 10.49 crore will be directed towards funding capital expenditure for Nova Agritech and expanding its existing formulation plant.

Further utilization of funds includes Rs 26.65 crore to address the working capital requirements of Nova Agritech and Rs 43.36 crore for investments in the working capital needs of Nova Agri Sciences.

The promoters of Nova Agritech are Suraksha Agri Retails (India), Malathi S, and Kiran Kumar Atukuri. The successful IPO reflects investor confidence in the company’s growth prospects and strategic initiatives.