Nova Agritech Soars 36% Above IPO Price in Stellar Market Debut

31 Jan 2024 , 05:25 AM

On January 31, Nova Agritech achieved a respectable start when its shares were listed at a 36.5 % premium over the IPO price. In contrast to the issue price of ₹41, the shares closed at ₹57.75 on the NSE. Analysts predicted that the stock will list between ₹ 58 and ₹72, at a premium of 40–70 %.

The initial public offering (IPO) included a fresh issue of 2.73 crore shares valued at ₹112 crore and an offer-for-sale of 77.58 lakh shares valued at ₹31.81 crore. The IPO was open for subscription on January 23 and ended on January 25. The offer’s price range was set at ₹39–41 per share.

The issue proceeds will be divided as follows: ₹10.49 crore will be used to fund Nova Agritech’s capital expenditures and the expansion of its current plant; ₹26.65 crore will be used to meet working capital requirements; ₹43.36 crore will be invested in Nova Agri Sciences; and ₹14.20 crore will be used to establish a formulation plant in the subsidiary.

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