Nova Agritech IPO: Subscriptions Surge to 17 Times, Closing Tomorrow

24 Jan 2024 , 12:15 PM

On January 24, the second day of bidding, Nova Agritech’s Rs 143.8 crore IPO garnered a subscription rate of 17.44 times. Click here to subscribe the IPO.

Notably, retail investors exhibited a strong interest, bidding 21.75 times, while high net-worth individuals (HNI) showed substantial participation with a 29.41 times subscription. Qualified institutional buyers (QIB) secured 64% of the allocated quota.

Closing on January 25, the IPO features a price band of Rs 39-41 per share. Comprising a fresh issue of 2.73 crore shares worth Rs 112 crore and an Offer for Sale (OFS) of 77.58 lakh shares valued at Rs 31.81 crore, the IPO is led by promoters Suraksha Agri Retails (India), Malathi S, and Kiran Kumar Atukuri.

Ahead of the IPO, Nova Agritech raised Rs 43.14 crore from four institutional investors on January 19, with AG Dynamic Funds being the largest investor, acquiring nearly Rs 13 crore worth of equity shares. Other notable investors include Neomile Growth Fund – Series I, Saint Capital Fund, and Quantum-State Investment Fund, each investing over Rs 10 crore.

The fresh issue proceeds of Rs 14.20 crore will be allocated for investment in subsidiary Nova Agri Sciences to establish a new formulation plant. Additionally, Rs 10.49 crore will fund capital expenditure by Nova Agritech and support the expansion of its existing formulation plant. Nova Agritech plans to utilize Rs 26.65 crore for the working capital requirements of Nova Agritech and Rs 43.36 crore for investment in Nova Agri Sciences’ working capital.

Keynote Financial Services and Bajaj Capital serve as the book-running lead managers, while Bigshare Services functions as the registrar for the IPO. Nova Agritech, specializing in agri-input manufacturing with a focus on soil health management, crop nutrition, and crop protection products, adopts a tech-driven approach in collaboration with approximately 11,722 dealers in its network.