Agri-input manufacturer, Nova Agritech files DRHP with SEBI

6 Mar 2023 , 03:10 PM

Nova Agritech Limited, a Telangana-based manufacturer of agricultural inputs has filed draft prospectus to raise funds through initial public offering (IPO). The IPO comprises fresh issue of equity shares worth Rs 140 crore and an offer for sale of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao, a selling shareholder.

The company will use net proceeds from the issue towards investment in its subsidiary Nova Agri Sciences Private Limited for setting-up a new formulation plant, funding capital expenditure of the company and expanding existing plat, for working capital requirements and other general corporate purposes.

The company is in talks with lead managers for pre-placement of equity shares of worth Rs 25 Crore. If such placement happens, the company will reduce issue size accordingly. 

The company was founded in 2007 by Sambasivarao Yeluri and Kalyana Chakravarthy with an objective to become a one-stop solution provider for the farming community.  It is currently being led and promoted by technocrat Kiran Kumar Atukuri who has over 2 decades of experience with agri chemical, seed and fertilizer companies.

As of January 31, 2023, Nova Agritech has a total of 629 product registrations, comprising of 7 registrations in the soil health management category, 168 registrations in the crop nutrition category, 4 registrations in bio pesticides category and 450 registrations in the crop protection category by its subsidiary, additionally, along with its group companies, it has applied for 79 new registrations.

Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue. Bigshare Services Pvt Ltd is the registrar for the same.