Nova Agritech Raises Rs 43 Crore from Anchor Investors

20 Jan 2024 , 12:11 PM

Nova Agritech Ltd, a manufacturer of agricultural supplies, received little more than Rs 43 crore from anchor investors on Friday, just days before its IPO. According to a circular posted on the BSE website, the business issued 1.05 crore equity shares at Rs 41 each to anchor investors.

At this price, the total transaction value is estimated to be Rs 43.14 crore, according to the report.

Foreign and domestic institutional investors that have received shares include Quantum-State Investment Fund, Neomile Growth Fund, AG Dynamic Funds Limited, and Saint Capital Fund.

The Rs 144-crore first share offering will be open for public subscription on January 22 and will end on January 24. The business has specified a price range of Rs 39 to Rs 41 per share for the issue.

The IPO consists of a new issue of equity shares worth up to Rs 112 crore and an offer-for-sale (OFS) component of 77.58 lakh equity shares by shareholder Nutalapati Venkatasubbarao, who holds an 11.9% interest in the firm.

Proceeds from the new issue of Rs 14.20 crore would be used to invest in its subsidiary Nova Agri Sciences to establish a new formulation facility and Rs 10.49 crore to support Nova Agritech’s capital expenditure and development of its current formulation plant.

It would also invest Rs 43.36 crore in Nova Agri Sciences to cover its working capital requirements, in addition to Rs 26.65 crore in Nova Agritech. In addition, a part will be used for general business purposes.

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